7/31/2019 Stocks Cascade Lower Gold Rebounds above my Annual Pivot.

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Richard Suttmeier is the Chief Market Strategist at www.ValuEngine.com.ValuEngine is a fundamentally-based quant research firm in Newtown, PA. ValuEnginecovers over 7,000 stocks every day.

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May 18, 2012 Stock s Cascade Low er Gold Rebounds above m y Annual Pivot .

Markets in Review: Asian stocks were lower on Friday. The Nikkei 225 ended their session at 8,611 down 2.99% on the day. The Hang Seng ended their session at 18,952 down 1.30% on the day.

European exchanges opened lower on Friday after a weak day on Thursday. The FTSE 100 endedThursday at 5,338 down 1.24%. The DAX ended Thursday at 6,309 down 1.18%. The CAC 40ended Thursday at 3,012 down 1.20%. The yield on the 10-Year US Treasury declined to a new yeato date low at 1.689 with the September 23rd record low yield at 1.671 after my monthly value level at$1525.8 held. Gold rebounded above my annual pivot at $1575.8 to $1589.5 this morning. In myWednesday TheStreet.com story, I recommended buying gold for a short-term trade. Crude oil tradedas low as $91.60 per barrel this morning well below its 200-day simple moving average at $96.24. Theeuro versus the dollar traded down to 1.2646 this morning well below my semiannual pivot at 1.2980.

Todays Four in Four Key Levels:1. Yields The yield on the 10-Year Treasury is below my semiannual pivot at 1.903 with a

monthly pivot at 1.734, the Sept 23

rd

low yield at 1.671 and quarterly risky level at 1.407.2. Commodities Gold has a monthly value level at $1525.8 the Troy ounce with an annualpivot at $1575.8 and semiannual risky level at $1635.8. For Crude oil my semiannualvalue level is $79.83 with the 200-day SMA at $96.24.

3. Currencies The euro versus the dollar shows a monthly value level at 1.2257 with mysemiannual pivot at 1.2980.

4. Equities The Dow Industrial Average is below my quarterly pivot at 12,794 with myannual value level at 12,312. The S&P 500 is below quarterly and annual pivots at 1337.7and 1363.2. The NASDAQ is below my quarterly pivot at 2911 with my annual value levelat 2698. Dow Transports is down 1.6% YTD with my semiannual value level at 4407 andmonthly risky level at 5385. The Russell 2000 has a semiannual value level at 572.90 wita monthly risky level at 813.56. It appears that my prediction that Dow Transports andRussell 2000 will not return to their lag 2011 all time highs at 5627.85 set on July 7, 2011and 868.57 set on May 2, 2011 in 2012 is on the money.

5. ValuEngine Valuations Stocks remain cheap fundamentally with 76.3% of all stocksundervalued, but keep in mind that on October 4th 93.5% were undervalued. A factor isthe low 30-Year bond yield at 2.80%. Ten sectors are undervalued with six overvalued.Autos-Tires-Trucks 25.0% UV, Basic Materials 21.9% UV, Oils-Energy 13.1% UV,Business Services 11.1% UV, and Consumer Discretionary 10.8%.

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