The Red Roadmaster’s US Market Monthly Re-cap + Stock Talk ™

3 April 2010 Date Line: Hong Kong (SAR) China

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Red’s Bull Alert: Energy, materials and major manufacturers led the DJIA and S&P 500's gains as Thursday's data suggested improving Global demand for commodities, as the DJIA targets 11,000 now.                                   

Re-cap of the US Stock Market Action for the Week ending 1 April 2010

                                 DJIA, S&P 500 rise; RIM curbs NAS on Thursday

The US stock market was closed Friday, and the Jobs report augured some uncertainty, as many market players squared their bets, causing some selling and, in turn, the afternoon slide, which was heightened by the light trade, the NAS made the sharpest slide falling from a 1% gainer all the way into the Red. .A late flurry of buying helped stocks into the close, but it was unable to return to the improved 52 week highs that it set in the early part of the session, it still finished the week on a strong note with broad based gains, as all 10 major sectors finished in the Green.

On the Day: The DJIA rose 70.44 pts, or 0.65%, to close at 10,927.07, the S&P 500 gained 8.67 pts, or 0.74%, close at 1,178.10, and the leading NAS lagged, tallying up a + 4.62 pts, or 0.19%, to end the session at  2,402.58.

On the Week: The DJIA rose 0.7%, the S&P 500 gained 1%, and the NAS moved up 0.3%

Start of Q-2: Q-2 got off to a good start for the US stock market, with both the DJIA and the S&P 500 closing on 18-month highs. The DJIA rose 70.44 pts, or 0.65%, to close at 10,927.07, the S&P 500 gained 8.67 pts, or 0.74%, close at 1,178.10, and the leading NAS lagged, tallying up a + 4.62 pts, or 0.19%, to end the session at  2,402.58.

The DJIA and the S&P 500 rose Thursday on upbeat economic data, but the NAS fell following downbeat results for RIMM. Anxiety about Friday's March payrolls report held gains down.

An index of US manufacturing activity in March rose to its highest level in over 5-1/2 years, the Institute for Supply Management said. Earlier, a US Labor Department report showed initial weekly claims for jobless benefits fell more than expected.  Overseas manufacturing reports, including one from China, also bolstered sentiment.

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Energy, materials and major manufacturers led the Dow's and the S&P 500's gains as Thursday's data suggested improving Global demand for commodities. The S&P materials index rose 1.8%.

In the energy sector, US Crude Oil futures rose to an 18-month intra-day high above US$85 bbl after the data offered signs the US economy is improving.

The spike in Crude Oil prices propelled shares of energy companies higher, with Exxon Mobil up 0.9% at US$67.61, and rival Chevron Corp up 1.1% at US$76.69. The S&P energy index gained 1.6%.

Other standouts on the commodities front were mining and steel companies. Shares of gold producer Newmont Mining climbed 3.9% to US$52.91 as US Gold futures climbed to a 2 week high.

Materials gained the most made as they rose 1.8%. Support for the sector was helped by a 0.5% loss in the US Dollar Index.

The USD's decline lifted commodity prices, which hiked the CRB Commodity Index to a 1.1% gain.

Natural gas was the biggest gainer among commodities; contract prices had been down roughly 1% in the morning, but news of a smaller than expected inventory build sent prices up 5.7% to US$4.09 per MMBtu.

Advancing Sectors: Materials (+1.8%), Energy (+1.6%), Utilities (+1.3%), Telecom (+1.0%), Financials (+0.9%), Consumer Discretionary (+0.7%), Industrials (+0.6%), Health Care (+0.6%), Consumer Staples (+0.5%), Tech (+0.1%)

Declining Sectors: (None)

Volume and Breadth: About 7.78B/shrs traded on the NYSE, the AMEX and the NAS, below last year's estimated daily average of 9.65B/shrs. Advancers beat decliners on the NYSE by 3 to 1, and on the NAS, about 5 stocks rose for each 4 stocks that fell.

Market Indexes Technical Analysis

Date Symbol Price Technical Analysis Support Resistance

Apr-01-2010 QQQQ 48.16 Bullish (0.33) 46.66 48.19

Apr-01-2010 DIA 109.28 Neutral (0.16) 108.85 110.05

Apr-01-2010 SPY 117.8 Neutral (0.17) 117.23 118.95

Stocks to Watch on Monday

Boston Scientific Corporation (BSX), Caterpillar, Inc. (CAT), The Walt Disney Company (DIS), Estée Lauder Company (EL), and United States Steel Corporation (X).

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Red Alert: The DJIA is nearing 11,000 and S&P 500 is approaching 1,200, these are two technically important milestones, and as such it will be interesting to see if stocks can cut through those levels, or if they stall, some analysts think the biggest problem facing the market is that it is not yet clear whether or not average investors are ever going to buy into the Tally. So stocks could run out of steam if a decent chunk of money remains in bond funds and other less risky investments. It is my belief that there is plenty of liquidity in the market to fuel it up and through the resistance in here. Further, it is worth noting that the VIX is currently not much lower now than what it was in the Summer of 2008.

Crude Oil and Gold Focus Report

Crude Oil rallied to a 17 month high of US$84.7 in Thursday's NY session as economic data show that the World economy is on the road to solid recovery

The front-month WTI contract extended its gains on Day One of Q-2 after surging +5.5% in Q-1 Y 2010.

PMIs in China, India and Europe beat market expectations. In China, manufacturing PMI advanced to a seasonally adjusted 55.1 in March from 52 only a month ago.

The stronger than expected reading indicates the manufacturing sector in China, the World's 3rd biggest economy continues expansion.

In India, PMI fell to 57.8 from 58.5 in February. A reading above 50 indicates expansions and the index suggests India's manufacturing activities have been growing for 12 months.

In the 16 nation EuroZone, similar reading improved to 56.6 in March from 54.2 in February. The market had anticipated an increase to 56.3.

The market focus Friday  is US' ISM manufacturing index which probably expanded to 57 in March from 56.5 in the past month.

The Gold price is advancing in tandem with energy. The benchmark contract rose for a 2nd day to US$1125 oz. Other members in the Precious Metal Complex rose more strongly as they have more applications in industrial activities.

Silver rose +1.85% to US$17.86. For PGMS, platinum gained +1.28% to US$1667.9, and  Palladium rallied +2.82% to US$493.5.

Gold is mainly used in jewelry and for investment purposed. Industrial application only takes up around 10% of the production annually, but industrial use represents over 70% in Silver, as investment only takes up about 5%.

In PGM, industrial applications, mainly as autocatalytic converters, take up over 50% in both Platinum and Palladium. Shares in investment demand were only single digit although this should increase this year I believe. Stay tuned….Paul A. Ebeling, Jnr. www.livetradingnews.com

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Boston Scientific Corporation (BSX) Up-date 1 Last Look: April 20, 2009

April 3, 2010

Paul A. Ebeling, Jnr. Analyst

Today let’s look at Boston Scientific Corporation (BSX), prolific medical device maker, from a Technical POV. The overall analysis after Thursday’s (April 1) market action is Neutral: in the near term Neutral, mid-term Bearish, and long term Bearish. The recent Candle Stick analysis is: Very Bearish

**Chart by: http://www.stockta.com

Latest News and Opinion: Boston Sci's ICD recall may result in asset sale

http://www.reuters.com/article/idCNN0113666920100402?rpc=44

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Thursday’s Market Action Close 7.23 +.01 Volume 27,779,700/shrs

There is a Bearish Harami on March 31 and three Gaps open down between October 20, 2009 and March 15, 2010 @ 10.09/6.98; the near term resistance is 7.26 support at 6.99, and the 50 day (EMA) exponential moving average is 7.72.

This is Boston Scientific Corporation (BSX): The Company makes medical supplies used in minimally invasive surgical procedures. Its devices are used to diagnose and treat conditions in a variety of medical fields, including cardiology (cardiovascular group), gynecology and urology (endosurgery group), pain management (neuromodulation), and heart failure and arrhythmia (cardiac rhythm management group). Its 13,000-plus products, made in about 25 factories, include defibrillators, catheters, coronary and urethral stents, pacemakers, biopsy forceps and needles, and urethral slings. Boston Scientific markets its wares in some 45 countries worldwide, primarily through its own direct sales staff.Competitive Landscape

Demand is driven by population demographics and advances in medical knowledge and technology. The profitability of individual companies depends on the ability to develop superior products. Large companies have economies of scale in manufacturing and R&D. Small companies can compete successfully by specializing in a particular market segment, or through technical innovation. Annual revenue per employee is about US$250,000.Medical Supplies and Devices Industry Forecast

The output of US medical instruments and supplies is forecast to grow at an annual compounded rate of 4% between 2008 and 2013. Data Sourced: December 2009

Boston Scientific Corporation (HQ)

Peter Michael Nicholas Jr. Co-Founder and Chairman

One Boston Scientific PlaceNatick, MA 01760-1537United States Phone: 508-650-8000Fax: 508-650-8923

http://www.bostonscientific.com

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Caterpillar, Inc. (CAT) Up-date 20 Last Look: February 10, 2010

April 3, 2010

Paul A. Ebeling, Jnr. Analyst

Let’s have a look at Caterpillar, Inc. (CAT), the World's #1 maker of earthmoving machinery and a leading supplier of agri. equipment, from a Technical POV. The overall indications, after Thursday’s (April 1) market action, are Bullish: in the near term Very Bullish, mid-term Neutral, and long term Neutral. The recent Candle Stick analysis is: Bearish

**Chart by: http://www.stockta.com

Latest News and Opinion: Art Cashin: Why Bulls Continue to Lead Markets

http://www.cnbc.com/id/36132869?__source=yahoo|headline|quote|text|&par=yahoo

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Thursday’s Market Action Close 63.99 + 1.41 Volume 7,829,800/shrs

There a Bearish Harami on March 3 and two Gaps open up between February 9 and March 1, 2010 at 52.15/57.25, the near term resistance 64.13 support at 35.15, and the 50 day (EMA) exponential moving average is 59.16.

This is Caterpillar, Inc (CAT): Caterpillar is the world's #1 maker of earthmoving machinery and a leading supplier of agricultural equipment. It makes construction, mining, and logging machinery; diesel and natural gas engines; industrial gas turbines; and electrical power-generation systems. Caterpillar has plants worldwide and sells its equipment globally via a network of 3,600 locations in 180 countries, offering rental services through more than 1,600 outlets worldwide, and it provides financing and insurance for its dealers and customers. Cat Power Ventures invests in power projects that use Caterpillar power generation equipment, and Caterpillar Logistics Services offers supply chain services

Industries Where Caterpillar Competes

Construction, Mining & Other Heavy Equipment ManufacturingAgricultural Machinery ManufacturingFinancial ServicesInsuranceTransportation Services

Caterpillar, Inc. (HQ)

Chairman and CEO James W. (Jim) Owens

100 NE Adams St. Peoria, IL 61629United States Phone: 309-675-1000Fax: 309-675-1182

http://www.cat.com

Caterpillar Subsidiaries

Caterpillar Logistics Services, Inc.Mitsubishi Caterpillar Forklift America Inc.Progress Rail Services Corporation

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The Walt Disney Company (DIS) Up-date 9 Last Look: February 8, 2010

April 3, 2010

Paul A. Ebeling, Jnr. Analyst

Today let’s look at The Walt Disney Company (DIS), Mickey’s World, from a Technical POV. The overall indications, after Thursday’s (April 1) market action, are Very Bullish: in the near term Bullish, mid-term Very Bullish, and long term Very Bullish. The recent Candle Stick analysis is: Bearish

**Chart: http://www.stockta.com

Latest News and Opinion: Disney pushes back Miramax deadline

http://losangeles.bizjournals.com/losangeles/stories/2010/03/29/daily25.html?ana=yfcpc

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Thursday’s Market Action Close 35.55 + .64 Volume 14,602,900/shrs

There is a DOJI on March 31 and one Gap open up on November 4, 2009 at 27.73/27.90 support is 35.15, the near term resistance 36.08 and the 50 day exponential moving average at 32.72.

This is The Walt Disney Company (DIS): The King of the Magic Kingdom is a mouse, we all know him as Mickey. The Walt Disney Company is the world's #2 media conglomerate, # 1 is Time Warner (TWX) with assets encompassing movies, music, publishing, television, and theme parks. Disney’s TV holdings include the ABC TV network + 10 broadcast stations, and a portfolio of cable networks including ABC Family, A&E Television Networks (37%-owned), and ESPN (80%). Walt Disney Studios produces films through imprints; Walt Disney Pictures, Touchstone, Pixar, and Miramax. In addition, Walt Disney Parks and Resorts is one of the top theme park operators in the world, we all know them as Walt Disney World and Disneyland Resorts. Disney competitors are primarily in the Film & Video industry, DIS also competes in the Internet Content Providers, Music, and Publishing sectors, the competition is; CBS Corp, News Corp, and Time Warner.

The Competitive Landscape

In the motion picture production and distribution sector consumer spending drives demand. The profitability of individual companies depends on creativity, marketing, and distribution. Large companies have the advantages of long term contracts with key actors and directors, a permanent staff of technical employees, and wide distribution networks. Small companies compete by creating marketable movies, often for niche audiences, on low budgets. Although production work is labor-intensive, the value of the product results in high average annual industry revenue of US$300,000 per employee.

The Walt Disney Company (HQ)

Robert A. Iger, President, CEO, and Director 

500 S. Buena Vista St. Burbank, CA 91521-9722United States   Phone: 818-560-1000Fax: 818-560-1930 http://disney.go.com/

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Estée Lauder Company (EL) Up-date 6 Last Look: March 12, 2010

April 1, 2010

Paul A. Ebeling, Jnr. Analyst

Today, let’s look at Estée Lauder Company (EL), a seller of cosmetics, fragrances, and skin care products, from a Technical POV. The overall indications, after Thursday’s (April 1) market action, are Very Bullish: in the near term Bullish, mid-term Very Bullish, and long term Very Bullish. The recent Candle Stick analysis is: Neutral

**Chart by: http://www.stockta.com

Latest News and Opinion: S&P Revises Outlook for Estee Lauder

http://www.foxbusiness.com/story/markets/industries/retail/sp-revises-outlook-estee-lauder/

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Thursday’s Market Action Close 65.58 + .71 Volume 974,000/shrs

There are seven Gaps open up between October 6, 2009 and March 29, 2010 at 36.77/64.07, the near term resistance is 66.40, support at 63.95, and the 50 day (EMA) exponential moving average is 59.87.

This is Estée Lauder Company (EL): The firm's Estée and Bobbi brands are counted among some of the closest friends to women worldwide. Estée Lauder sells cosmetics, fragrances, and skin care products, with brands including upscale Estée Lauder and Clinique and professional Bobbi Brown essentials. Its lines are sold in department stores, company stores, and by specialty retailers, as well as online. The firm has expanded its chain of freestanding retail stores (primarily for its M.A.C, Origins, and Aveda brands). The founding Lauder family controls about 84% of its voting shares. Estée Lauder launched a Tom Ford collection in 2005 and in 2007 sold its Rodan + Fields line. CEO Fabrizio Freda, a veteran of Procter & Gamble, joined the firm in 2008.

Competitive Landscape

Demand is driven by population growth and consumer preferences. The profitability of individual companies depends on product innovation, effective sales and marketing, and efficient operations. Large companies have scale advantages in purchasing, manufacturing, distribution, and marketing. Small companies can compete effectively by offering specialized products. The industry is capital-intensive: average annual revenue per worker exceeds US$600,000.

Personal Care Products Manufacturing Industry ForecastThe output of US toiletries manufacturing is forecast to decline at an annual compounded rate of 1 percent between 2008 and 2013. Data Sourced: December 2009

Toiletries Production Growth Plummets Then Recovers

Estee Lauder Companies Inc. (HQ)

William P. Lauder, Exec. Chairman

767 Fifth AvenueNew York, NY 10153United StatesPhone: 212-572-4200Fax: 212-572-3941

http://www.elcompanies.com

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McDonald's Corporation (MCD) Up-date 14 Last Look: January 22, 2010

March 9, 2010

Paul A. Ebeling, Jnr. Analyst

Today let’s look at McDonald’s Corporation (MCD), the world's #1 fast-food company, from a Technical POV. The overall indications, after Monday’s (March 8) market action, are Very Bullish: in the near term Very Bullish, mid-term Bullish, and long term Very Bullish. The recent Candle Stick analysis is: Neutral.

**Chart by: http://www.stockta.com

Latest News and Opinion: Your First Move For Monday April 5th

http://www.cnbc.com/id/36141995?__source=yahoo|headline|quote|text|&par=yahoo

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Thursday’s Market Action Close 67.58 +. 86 Volume 5, 474,700/shrs

There is a Bearish Engulfing Candle on March 29, and two Gaps open up on March 8 and 12 at 63.76/65.36, the near term resistance is 67.84, support at 67.26, and the 50 day (EMA) exponential moving average is 65.07.

This is McDonald’s Corporation (MCD): "McDonald's is the world's #1 fast-food company by sales, with more than 31,000 restaurants serving burgers and fries in 120 countries, with about 14,000 Golden Arches locations are in the USA. The popular chain is well-known for its Big Macs, Quarter Pounders, and Chicken McNuggets. Most of its outlets are free-standing units, but McDonald's also has many quick-service kiosk units located in airports and retail areas. Each unit gets its food and packaging from approved suppliers and uses standardized procedures to ensure that a Big Mac purchased in Pittsburgh tastes the same as one bought in Beijing, I lived in Beijing for 4 years and it’s true. More than 75% of its restaurants are run by franchisees or affiliates.

The Competitive Landscape

Demographics and personal income drive demand. The profitability of individual companies depends on efficient operations, effective marketing, and the ability to provide fast service. Large companies have advantages in purchasing, financing, and marketing. Small companies can compete by offering unique products or serving a local market. The industry is highly labor-intensive: average annual revenue per worker is just under US$40,000.

McDonald's Corporation (HQ)

Chairman; Andrew J. (Andy) McKenna Sr.

2111 McDonalds Dr. Oak Brook, IL 60523United States  Phone: 630-623-3000Fax: 630-623-5004Toll Free: 800-244-6227

http://www.mcdonalds.com

McDonald's SubsidiariesMcDonald's Restaurants Limited Ronald McDonald House Charities, Inc.

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United States Steel Corporation (X) Up-date 12 Last Look: March 7, 2010

April 3, 2010

Paul A. Ebeling, Jnr. Analyst

Today let’s look at United States Steel Corporation (X), one of the world’s steelmaking leaders, from a Technical POV. The overall indications, after Thursday’s (April 1) market action is Bullish: in the near term Bullish, mid-term Bullish, and long term Bullish. The recent Candle Stick analysis is; Bearish

**Chart by: http://www.stockta.com

Latest New and Opinion: Steel Prices Rise Amid Money Printing

http://www.minyanville.com/businessmarkets/articles/deflation-inflation-1933-financialtimes-higherprices-steel/4/1/2010/id/27573?camp=syndication&medium=portals&from=yahoo

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Thursday’s Market Action Close 65.70 + 2.18 Volume 15,635,100/shrs

There is a Bearish Engulfing Candle on March 30, are three Gaps open up between November 11, 2009, and March 2, 2010 at 38.56/54.77, the near term resistance is at 66.20 support at 63.87, and the 50 day exponential moving average is 57.40.

This is United States Steel Corporation: Pittsburgh, PA based United States Steel is the US’s #2 integrated steelmaker behind Mittal Steel USA. US Steel operates mills throughout the US Mid-west, Ontario, Canada, and in Serbia and Slovakia. U.S. Steel produces sheet and semi-finished steel, tubular and plate steel, and tin products. Its customers are primarily in the automotive, construction, chemical and steel service center industries. Further, U.S. Steel offers services in mineral resource management, engineering and consulting. In 2007 the company acquired tubular goods maker Lone Star Technologies for US$2.1B and Stelco for US$1.1B. US Steel is ranked #146 in FORTUNE 500.

The Competitive LandscapeUnited States Steel's competition in the primary Metals Manufacturing sector is Mittal Steel USA. The industry is highly concentrated and the major companies control 90% of the market. The output of US primary ferrous and non-ferrous metals manufacturing is forecast to increase at an annual compounded rate of 4.4 % between 2008 and 2013.

United States Steel Corporation (HQ)

Chairman & CEO John P. Surma Jr.

EVP & COO John H. Goodish

600 Grant St. Pittsburgh, PA 15219-2800United States  Phone: 412-433-1121Fax: 412-433-5733

http://www.ussteel.com

United States Steel Subsidiaries and Affiliates

Pro-Tec Coating CompanyTranstar, Inc. U.S. Steel Canada Inc

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