Richard Suttmeier is the Chief Market Strategist at www.ValuEngine.com.

ValuEngine is a fundamentally-based quant research firm in Princeton, NJ. ValuEngine

covers over 5,000 stocks every day.

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

picks, and commentary can be found HERE.

Suttmeier's Four in Four video can be watched on the web HERE.

September 16, 2009 – Tracking the Top for Stocks

Comments for Ben Bernanke, a fresh twist on the US Capital Markets, and tracking the
top for the Stock Market
Fed Chief Ben Bernanke did not see the banking problems coming.
The problems in the banking system began well before August 2007. As an astute economist
he should have seen it coming before he became Fed Chairman.
On Lehman – Why didn’t the New York Federal Reserve Open Market Trading Desk take
Lehman’s collateral as it did for Bear Stearns? If Lehman was kept afloat as a Primary Dealer
the Federal Reserve may have prevented the tax payer ownership of AIG.
Why did Bernanke and the other regulators ignore Main Street while bailing out Wall Street?
The Stress Tests Bernanke orchestrated were bogus - The unemployment rate should be
higher and the tests did not go beyond 2010. Even the Congressional Oversight Panel says
we need new Stress Tests.
There is no comparison between "The Great Credit Crunch" and "The Great Depression". The
problem is that “The Great Credit Crunch” is far from over.
Bernanke says that the Recession is very likely over – But he did not know a year ago that we
were in one!
A fresh look at the US Capital Markets – yields and Comex Gold
US Treasury yields remain low despite growing supply via auctions. This is a sign of risk
aversion, and using the weak dollar in a carry trade. This is a dangerous strategy. This week’s
resistance is 3.404.
Comex gold is trying to break out and stay above a Grand a Troy ounce. If it does, it’s a sign
of being the currency of last resort. My weekly pivot is 1005.7 with daily resistance at 1021.3
and the March 2008 high at 1033.9.
Comex Copper and Nymex Crude Oil stay below their 200-week simple moving
averages.
Copper is below its 200-week and monthly resistances at 291.16 and 295.88. Without a
breakout the risk is to annual support at 240.20. This questions the global growth story.
Crude oil is below its 200-week and monthly resistance at 74.92 and 75.53. Without a
breakout my annual pivots remain magnets at 68.81 and 66.51. Demand for gasoline remains
subdued in the United States.
The euro is the wild card as a weak dollar has been dominating the market dynamics. My
weekly pivot is 1.4545 with today’s resistance at 1.4785, which would be a new high for the
move.
Let’s look at where to set up shorts for the overall markets – you have to start
somewhere!
The levels shown today are available to subscribers of ValuEngine’s new Weekly ETF Report.
Diamonds (DIA) has been trading around my annual pivot at 96.65, where initial shorts can
be justified. My second annual resistance is 100.78.
The NASDAQ 100 Shares (QQQQ) tested its 200-week simple moving average at 41.64 with
my quarterly risky level at $42.14, another zone for initial short positions. Weekly resistance is
42.98.
Resistances elsewhere are: 9,750 is the first annual resistance on the Dow Industrial
Average, Ascending Wedge resistance is 1063 on the S&P 500, weekly resistance is 2149 on
the NASDAQ, and annual resistances are 4037 and 4199 on Dow Transports.
Send me your comments and questions to Rsuttmeier@Gmail.com. For more information on
our products and services visit www.ValuEngine.com
That’s today’s Four in Four. Have a great day.

Richard Suttmeier
Chief Market Strategist
ValuEngine.com
(800) 381-5576

As Chief Market Strategist at ValuEngine Inc, my research is published regularly on the website
www.ValuEngine.com. I have daily, weekly, monthly, and quarterly newsletters available that track a variety of
equity and other data parameters as well as my most up-to-date analysis of world markets. My newest products
include a weekly ETF newsletter as well as the ValuTrader Model Portfolio newsletter. I hope that you will go to
www.ValuEngine.com and review some of the sample issues of my research.

“I Hold No Positions in the Stocks I Cover.”