Stocks are Cheap, but Longer-Term Technicals are Weak

8/4/2019 Stocks are Cheap, but Longer-Term Technicals are Weak

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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.

A variety of newsletters and portfolios containing Suttmeier's detailed research, stock picks

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Sept 29, 2011 Stock s are Cheap, but Longer-Term Technic als ar e Weak

In recent weeks we have seen 80% to 92% of all stocks undervalued according to ValuEngine.

The weekly charts are mixed with weekly closes straddling five-week modified movingaverages at 11,335 Dow Industrials, 1192.6 SPX, 2547 NASDAQ, 2220 NDX, 4581 DowTransports, 704.70 Russell 2000 and 363.60 SOX. The weekly technical configuration suggeststhat the trading ranges since August 9th will continue to hold. The monthly charts will shift tonegative at Fridays month end closes below five-month modified moving averages at 11,954Dow Industrials, 1273.5 SPX, 2683 NASDAQ, 2273 NDX, 5066 Dow Transports, 784.22 Russell2000 and 400.23 SOX. The monthly technical configuration suggests that the upper end of thetrading ranges will remain as resistances. Fridays closes will set new weekly, monthly andquarterly value levels, pivots and risky levels which will show weekly value levels, but monthlyand quarterly risky levels that tell us that stocks will not trade to new yearly highs for theremainder of 2011.

10-Year Note (2.004) Semiannual, annual, monthly and quarterly value levels are 2.414, 2.690,2.715 and 3.053 with daily, semiannual and weekly risky levels at 1.764, 1.672 and 1.369. Mysemiannual risky level at 1.672 was tested last Friday.

Courtesy of Thomson / Reuters


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Comex Gold ($1610.7) Daily, semiannual and annual value levels are $1576.3, $1469.9 and$1,356.5 with quarterly, semiannual and monthly pivots at $1655.8, $1644.8 and $1702.3 and weekly

risky level at $1915.0. The daily chart shows a double-top with the 200-day simple movingaverage as important support at $1525.6 and the 50-day as resistance at $1744.7.


Nymex Crude Oil ($80.85) Daily and weekly value levels are $77.61 and $73.58 with the 200-week

simple moving average at $83.65, my annual risky levels at $99.91 and $101.92, and quarterly,semiannual and monthly risky levels at $102.40, $103.92 and $104.23.



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The Euro (1.3551) My daily value level is 1.3365 with weekly and quarterly pivots at 1.3646 and1.3728, the 200-day simple moving average at 1.4050, and semiannual and monthly risky levels at

1.4752 and 1.4872.


Daily Dow - (11,011) Daily and weekly value levels are 10,646 and 10,101 with the 200-week and120-month simple moving averages at 10,665 and 10,595, the 50-day at 11,462, and annual andmonthly risky levels at 11,491 and 12,779. Semiannual value levels are 9,635 and 8,468.



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S&P 500 (1151.1) Daily, weekly and semiannual value levels are 1112.7, 1040.1, 981.3 and 855.7with the 50-day at 1204.6 and my annual pivot at 1210.7.

NASDAQ (2492) Daily, annual, weekly, and semiannual value levels are 2428, 2335, 2221, 2199and 2049 with the 50-day at 2565 and monthly risky level at 2827.

NASDAQ 100 (NDX) (2221) Daily, weekly, semiannual and annual value levels are 2179, 1999,1951, 1861 and 1723 with the 50-day and 20-day SMAs at 2232 and 2292 and monthly risky level at2431.

Dow Transports (4254) Daily, semiannual and weekly value levels are 3992, 3868 and 3686 withmy semiannual pivot at 4335, the 50-day at 4641, and annual and monthly risky levels at 5179 and5190.

Russell 2000 (651.97) Daily, weekly and semiannual value levels are 619.55, 565.64, 577.47 and

530.04 with the 50-day at 715.64, and annual and monthly risky levels at 784.16 and 825.19.

The SOX (355.36) Daily, weekly, annual and semiannual value levels at 343.55, 317.42, 270.98,258.97 and 204.67 with the 50-day at 362.61, the 200-day at 412.89, and monthly risky level at418.07.

Equity Fundamentals Stocks are extremely undervalued. 89.7% of all stocks are undervalued / 10.3% of all stocks are overvalued. In March 2009 we

saw 91.1% of all stocks undervalued. On September 23rd we showed 91.8% undervalued. All sixteen sectors are undervalued by double-digit percentages, fifteen by 21.1% to 33.5%.

Back in March 2009 the sectors were undervalued by 33% to 45%. Check out and subscribeto 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 Banking

Profile. We publish a ValuEngine List of Problem Banks in this publication:http://www.valuengine.com/nl/mainnl?nl=C

Definition of MOJO This is my term for technical momentum. I use whats called 12x3x3 slowstochastic 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 priceweakness. This is done on a GTC Limit Order to buy weakness to the Value Level.


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Risky Level The price at which you remove a single long position or reduce a multiplelong 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 multipleshort 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

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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.

Stocks are Cheap, but Longer-Term Technicals are Weak

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