The daily charts are overbought, but stocks remain undervalued.

8/3/2019 The daily charts are overbought, but stocks remain undervalued.

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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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Oct 18, 2011 The dai ly char t s are overbought, but s toc ks re main under valued.

The Technical Picture for Stocks: The monthly charts are negative. The weekly charts are

positive. The daily charts show overbought MOJO. The October 4th

lows will be the lows for2011, but we will not see new highs for 2011. The monthly chart for the Dow Industrial Averagestays negative with a close in October below the five-month modified moving average at11,749. The weekly chart for the Dow Industrial Average stays positive on a close this weekabove the five-week MMA at 11,301. The Dow Industrial Average is between its 50-day and 200-day simple moving averages at 11,201 and 11,968. The yield on the 10-Year US Treasury istrending above its 50-day at 2.066. Gold is between its 200-day at $1542.3 and its 50-day at$1751.5. Crude oil is above its 50-day and 200-week SMAs at $84.84 and $83.55. The euroversus dollar is below its 50-day, 200-day and 200-week SMAs at 1.3922, 1.4075 and 1.3991.

10-Year Note (2.157) Semiannual, daily, quarterly and annual value levels are 2.414, 2.336, 2.669and 2.690 with my monthly pivot at 2.222, and weekly, and semiannual risky levels at 2.033 and 1.672which was tested on September 23rd.

Courtesy of Thomson / Reuters


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Comex Gold ($1672.5) Weekly, semiannual and annual value levels are $1625.8, $1469.9 and$1,356.5 with my semiannual pivot at $1644.8, and daily, quarterly, monthly risky levels at $1694.5,

$1738.4 and $1811.4, and the September 6

th

all time high at $1923.7. The 200-day is $1542.3 withthe 50-day at $1751.5.


Nymex Crude Oil ($86.33) The October 4th year-to-date low is $74.95 with my weekly pivot at

$87.14, the 200-week at $83.55, the 50-day at $84.84, and daily, monthly, quarterly and annual riskylevels at $90.54, $98.51, $100.34, $99.91 and $101.92.



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The Euro (1.3729) Weekly, and quarterly value levels are 1.3202 and 1.2598 with daily, monthly andsemiannual risky levels at 1.4004, 1.4579, 1.4752 and 1.4872. The 50-day, 200-day and 200-week

SMAs are 1.3922, 1.4075 and 1.3991.


Daily Dow - (11,397) The October 4th YTD low is 10,404.49 with annual and weekly pivots at 11,491and 11,650, and daily, monthly and quarterly risky levels at 11,840, 12,091 and 12,507 with the YTDhigh at 12,876.00. Semiannual value levels are 9,635 and 8,468. The 50-day is 11,201 with the 200-

day at 11,968.



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S&P 500 (1200.9) The October 4th YTD low is 1074.77 with semiannual value levels at 981.3 and855.7, my annual pivot at 1210.7, weekly and daily risky levels at 1230.6 and 1244.4, and monthly,

quarterly and annual risky levels at 1259.8, 1303.7 and 1562.9. The YTD high is 1370.58. The 50-dayis 1172.7 with the 200-day at 1275.8.

NASDAQ (2615) The October 4th YTD low is 2298.89 with my annual value level at 2335,semiannual value levels at 2199 and 2049, monthly, weekly, daily and quarterly risky levels at 2680,2717, 2708 and 2807, and the YTD high at 2887.75. My annual risky level is 3243. The 50-day is 2505with the 200-day at 2694.

NASDAQ 100 (NDX) (2334) The YTD low is 2034.92 with semiannual and annual value levels at1951, 1861 and 1723, my monthly pivot at 2312, weekly, daily and quarterly risky levels at 2427, 2410and 2440, the YTD high at 2437.42 and annual risky level at 2590. The 50-day is 2202 with the 200-day at 2293.

Dow Transports (4560) The October 4th YTD low is 3950.66 with semiannual value levels at 4335and 3868, my weekly pivot at 4687, and daily, monthly, annual and quarterly risky levels at 4758,4980, 5179 and 5359, and the YTD high at 5627.85. The 50-day is 4449 with the 200-day at 5040.

Russell 2000 (688.60) The October 4th YTD low is 601.71 with semiannual value levels at 577.47and 530.04, my weekly pivot at 713.00, and daily, monthly, annual and quarterly risky levels at 718.05778.77, 784.16 and 802.96, and the YTD high at 868.57. The 50-day is 683.08 with the 200-day at782.25.

The SOX (370.31) The October 4th YTD low is 322.24 with annual and semiannual value levels at270.98, 258.97 and 204.67, my monthly pivot at 363.01, and daily, weekly and quarterly risky levels at

385.14, 392.52 and 417.63, and the YTD high at 450.79. The 50-day is 354.88 with the 200-day at409.39.

Equity Fundamentals Stocks are extremely undervalued. 83.7% of all stocks are undervalued / 16.3% of all stocks are overvalued. In March 2009 we

saw 91.1% of all stocks undervalued. All sixteen sectors are undervalued, fifteen by double-digit percentages, nine by 20.2% to 27.0,

as the 30-Year bond yield starts to rise putting a drag on valuations. Back in March 2009 thesectors were undervalued by 33% to 45%. Check out and subscribe to www.ValuEngine.com

VE Morning Briefing If you want expanded analysis of the US Capital Markets including a FearlessPrediction of the Week and a Stock of the Day go to this link and sign up:

http://www.valuengine.com/nl/mainnl?nl=D

ValuTrader Model Portfolio If you want to learn how to Buy and Trade use this link and sign up:http://www.valuengine.com/nl/mainnl?nl=V

ETF Weekly If you want my Value Levels and Risky Levels for 30 Electronically Traded Funds usethis link and sign up: http://www.valuengine.com/nl/mainnl?nl=U

ValuEngine FDIC Evaluation Report In this report I slice and dice the FDIC Quarterly BankingProfile. We publish a ValuEngine List of Problem Banks in this publication:


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http://www.valuengine.com/nl/mainnl?nl=C

Definition of MOJO This is my term for technical momentum. I use whats called 12x3x3 slow

stochastic readings from daily, weekly and monthly charts. The scale is zero to 10.0 where above 8.0is overbought and below 2.0 is oversold.

Buy and Trade Strategies for Long Positions Value Level The price at which you establish an additional long position on share price

weakness. This is done on a GTC Limit Order to buy weakness to the Value Level. Risky Level The price at which you remove a single long position or reduce a multiple

long position on share price strength. This is done on a GTC Limit Order to sell strength tothe Risky Level.

Buy and Trade Strategies for Short Positions Value Level The price at which you remove a single short position or reduce a multiple

short position on share price weakness. This is done on a GTC Limit Order to buy weaknesto the Value Level.

Risky Level The price at which you establish an addition short position on share pricestrength. This is done on a GTC Limit Order to sell strength to the Risky Level.

Richard SuttmeierChief Market StrategistValuEngine.com(800) 381-5576

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As Chief Market Strategist at ValuEngine Inc, my research is published regularly on the website www.ValuEngine.com. I have daily, weekly, monthly, andquarterly newsletters available that track a variety of equity and other data parameters as well as my most up-to-date analysis of world markets. Mynewest products include a weekly ETF newsletter as well as the ValuTrader Model Portfolio newsletter. You can go tohttp://www.valuengine.com/nl/mainnl to review sample issues and find out more about my research.

I Hold No Positions in the Stocks I Cover.

The daily charts are overbought, but stocks remain undervalued.

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Transcript of The daily charts are overbought, but stocks remain undervalued.