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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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September 16, 2010 The Dow - Overbought but above semiannual p ivot at 10,558

The 10-Year US Treasury yield is still between my annual pivot at 2.813 and this weeks risky

level at 2.609. Gold is above this months pivot at $1263.8 after a new all time high at $1276.5.Crude oil failed to stay above annual and weekly pivots at $77.05 and $77.69 as expected. Theeuro is between its 50-day simple moving average at 1.2876 and its 200-day at 1.3240. The Dowhas become overbought and holding my semiannual pivot at 10,558 targets daily and weeklyrisky levels at 10,629 and 10,699. The Fannie and Freddie debate continues.

10-Year Note (2.715) Daily, annual and annual value levels are 2.786, 2.813 and 2.999 with weeklymonthly, quarterly and semiannual risky levels at 2.609, 2.562, 2.495 and 2.249. The rise in yields isnearly overdone.

Courtesy of Thomson / Reuters

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Comex Gold ($1269.3) Semiannual, quarterly and annual value levels are $1218.7, $1140.9 and$1115.2 with daily, weekly, semiannual and monthly pivots at $1260.3, $1252.7, $1260.8 and $1263.8Note that gold is no longer overbought on its daily chart.

Courtesy of Thomson / Reuters

Nymex Crude Oil ($75.73) Monthly and quarterly value levels are $74.45 and $56.63 with a dailypivot at $75.80, and annual and weekly pivots at $77.05 and $77.69 and semiannual risky level at

$83.94. Oil prices are nearly overbought.

Courtesy of Thomson / Reuters

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The Euro (1.3007) Daily and weekly value levels are 1.2868 and 1.2792. Quarterly and monthlyvalue levels are 1.2167, 1.1721 and 1.1424 with semiannual risky level at 1.4733. Note that MOJO is

rising again on the daily chart.

Courtesy of Thomson / Reuters

Daily Dow: (10,526) Monthly and quarterly value levels are 10,164 and 7,812 with annual andsemiannual pivots at 10,379 and 10,558, and daily, weekly and annual risky levels at 10,629, 10,699and 11,235. My annual risky level at 11,235 was tested at the April 26thhigh of 11,258.01. TheDow has become overbought.

Courtesy of Thomson / Reuters

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The Future of Fannie Mae and Freddie Mac - The Federal Housing Finance Agency (FHFA) theregulator of Fannie Mae and Freddie Mac thinks that the nations largest banks should pay for some o

the cost of bailing out the GSEs. It seems like the too big to fail banks do not want to take back $11billion in bad loans sold to Fannie and Freddie, which they have a legal obligation to do.

Fannie and Freddie were rescued by Conservatorship two years ago and the cost to tax payers isabout $148 billion and counting at least through 2012.

In a recent report Fitch Ratings indicated that the four largest US banks could book losses of $42billion if Fannie Mae and Freddie Mac force them to take back troubled mortgages they issued. Fitchalso estimated that JP Morgan (JPM), Citigroup (C), Bank of America (BAC) and Wells Fargo (WFC)could record $17 billion in losses if they had to repurchase 25% the GSEs seriously delinquent loans.

Heres the latest data from the FHFA with regard to Serious Delinquencies Delinquency rateshave declined recently, but in my judgment its just a pause caused by the home buyer tax credits, andmortgage modification limbo. Mortgage applications for home loan refinancing fell for a secondconsecutive week, falling to the lowest level since early August, as record low mortgage rates failed toboost demand. Meanwhile, 26% of all home sellers reduced their asking prices in August, the thirdmonthly decline in a row.

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Thats todays Four in Four. Have a great day.

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

Send your comments and questions to Rsuttmeier@Gmail.com. For more information on our productsand services visit www.ValuEngine.com

As Chief Market Strategist at ValuEngine Inc, my research is published regularly on the website www.ValuEngine.comI have daily, weekly, monthly, and quarterly newsletters available that track a variety of equity and other data parameters awell as my most up-to-date analysis of world markets. My newest products include a weekly ETF newsletter as well as the

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