stocks are cheap, but below 50-day simple moving averages

8/4/2019 Stocks are Cheap, but below 50-day Simple Moving Averages

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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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Sept 30, 2011 St ock s are Cheap, but below 50-day Simple Moving Averages

We are at month end and quarter end with a stock market thats extremely cheap fundamentally

with neutral to negative weekly charts technically and with monthly charts that becomenegative at todays closes below five-month modified moving averages at 11,954 DowIndustrials, 1273.5 SPX, 2683 NASDAQ, 2273 NDX, 5066 Dow Transports, 784.22 Russell 2000and 400.23 SOX. The near-term strength straddled 50-day simple moving averages at 11,429Dow Industrials, 1200.8 SPX, 2557 NASDAQ, 2227 NDX, 4618 Dow Transports, 711.82 Russell2000 and 361.64 SOX with Thursdays closes below all. With new weekly value levels and newmonthly and quarterly risky levels out next week, there does not seem to be a catalyst to takestocks out of the extremely choppy trading ranges set off the August 9th lows.

10-Year Note (1.976) 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 1.871, 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 ($1620.7) Daily, semiannual and annual value levels are $1575.5, $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 $1526.5 and the 50-day as resistance at $1744.7.


Nymex Crude Oil ($82.66) Daily and weekly value levels are $79.41 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 (1.3583) My daily value level is 1.3449 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 - (11,154) Daily and weekly value levels are 10,731 and 10,101 with the 200-week and120-month simple moving averages at 10,665 and 10,595, the 50-day at 11,429, 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 (1160.4) Daily, weekly and semiannual value levels are 1117.0, 1040.1, 981.3 and 855.7with the 50-day at 1200.8 and my annual pivot at 1210.7.

NASDAQ (2481) Daily, annual, weekly, and semiannual value levels are 2406, 2335, 2221, 2199and 2049 with the 50-day at 2557 and monthly risky level at 2827.

NASDAQ 100 (NDX) (2198) Daily, weekly, semiannual and annual value levels are 2147, 1999,1951, 1861 and 1723 with the 50-day and 20-day SMAs at 2227 and 2292 and monthly risky level at2431.

Dow Transports (4342) Daily, semiannual and weekly value levels are 4035, 3868 and 3686 withmy semiannual pivot at 4335, the 50-day at 4618, and annual and monthly risky levels at 5179 and5190.

Russell 2000 (662.80) Daily, weekly and semiannual value levels are 625.28, 565.64, 577.47 and

530.04 with the 50-day at 711.82, and annual and monthly risky levels at 784.16 and 825.19.

The SOX (350.82) Daily, weekly, annual and semiannual value levels at 341.04, 317.42, 270.98,258.97 and 204.67 with the 50-day at 361.64, the 200-day at 412.89, and monthly risky level at418.07.

Equity Fundamentals Stocks are extremely undervalued. 89.3% of all stocks are undervalued / 10.7% 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 21.0% to 33.2%.

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

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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 below 50-day simple moving averages

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