2385 Executive Center Drive, Suite 400 • Boca Raton, Florida 33431 Phone: (561) 922-5266 • Fax: (561) 623-6235 Page | 1RISK DISCLAIMER: There is a very high degree of risk involved in trading equities. Trading is not for every investor and only risk capital should be used. Past results are not indicative of future returns. Prism Trading School, LLC (“Prism”) and all individuals affiliated with Prism assume no responsibilities for your trading and investment results. The indicators, strategies, articles and all other features are for educational purposes only and should not be construed as investment advice. Any person who chooses to use this information as a basis for their trading assumes all the liability and risk for themselves and hereby and absolutely agrees to indemnify and hold harmless Prism, its principals, agents and employees. All of the material contained herein is believed to be correct, however, Prism will not be held responsible for accidental oversights, typos or incorrect information from sources that generate fundamental and technical information. Prism does not warrant the completeness or accuracy of such information, and does not warrant any results from the use of the information. Your use of Prism materials is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the information. You must assess the risk of any trade and make your own independent decisions regarding any securities mentioned herein. Prism affiliates may have a position or effect transactions in the securities described herein (or options thereon) and/or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. CURRENT MARKET SENTIMENT ECONOMIC NUMBERS AND DATA Time (ET) Indicator Date Actual Expectation Range Prior 8:30 AM Durable Goods Orders Sep 25 -2.4% 0.4% -2.0% t0 4.0% 4.9% 8:30 AM Durables Ex Transportation Sep 25 0.0% 1.0% 0.3% to 2.3% 0.8% 9:55 AM Univ of Michigan Confudence Sep 25 70.5 67 to 72 70.2 10:00 AM New Home Sales Sep 25 440K 420K to 500K 433K 10:00 AM New Home Sales MoM Sep 25 1.6% -3.0% to 15.5% 9.6% TECHNICAL Indices S2 S1 Pivot R1 R2 INDU (DOW) 9586 9640 9726 9812 9865 SPUZ (S&P) 1033 1041 1054 1066 1074 What a difference a day makes. Sentiment in the street is no longer Dow 10,000 rather Dow 9000. The bears score the first knock down with a blow to the weekly pivot (9722) and moreover with a second blow at the midpoint of the weekly candle (9666). With no institutional buying, this leaves the bulls defenseless only with squeezola to pump prime the Dow to 9800. Failure to either break the 9743 on the upside or revisit this in the down size will invite the bears with passion. A gap up on the consumer sentiment and the housing numbers are a blessing, for there can only be squezolita prior to the Jewish holiday. Art’s “buy at Yom Kippur,” may still come true! MARKET HIGHLIGHTS 09/25/2009 PRISM CALL Durable goods numbers just came out negative and the futures are selling off. We are seeing a negative malaise start to overtake this market, followed with real selling pressure. We are back to shorting rallies. If Michigan Sentiment is strong use it to get short as well. If the market breaks below yesterday’s lows, we can go down a l ot. On the upside, you now need to see buyers to run. Potential upside maybe up 50-60 points, if we can rally. Much more reward on the downside.
