THE DAILY BRIEF

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Phone: (561) 922-5266 • Fax: (561) 623-6235
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Wednesday 12.16.2009

CURRENT MARKET SENTIMENT

The market fell 49 points to finish at 10452 market awaits the Fed decision. Technically
(Dow) and 1108 (S&P). The indices flirted 10476-98 (Dow) & 1110-1113 (S&P) are likely
closely with the weekly pivots, yet managed to to limit the upside while the downside is
recoup slightly higher. All is on hold as the limited by yesterday’s low.

PRISM CALL

Index futures are pointing up on speculation that the Federal Reserve will hold its interest rate and
hints on the withdrawal of quantitative easing. Nothing is consequent, raw materials having suffered
far below expectation may be the play. Shorting up is very likely to be rewarding since no investors
will venture prior to the Fed’s decision.

INDU & SPUZ TECHNICALS DOW STOCKS TO WATCH

INDICES S2 S1 PIVOT R1 R2 STRONG WEAK

INDU CVX CAT

10387 10414 10459 10504 10532
(DOW)
JPM HPQ
SPUZ
(S&P) 1100 1104 1109 1115 1118
PG MMM

TRV MRK
0 FOREIGN MARKETS
COMMODITY PRICES
MARKET PRICE
 %

FTSE 5294.27 8.50 0.16 COMMODITY PRICE


DAX 5874.02 62.68 1.08

OIL 71.24 0.55
HANG SENG 21611.74 202.18 -0.93

NIKKEI 10177.42 93.93 0.93

GOLD 111.31 8.30
CHINA
3255.213 19.247 -0.59

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otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies.
 ECONOMIC CALENDAR NEWS

KERX Keryx Biopharma initiates

TIME INDICATOR RANGE EXPECTATION PRIOR ACTUAL Phase 3 registration trial of KRX-
0401 for treatment of patients with
8:30 Consumer Price Index 0.2% to 0.6% 0.4% 0.3% 0.4%
advanced multiple myeloma (2.84 )
am (MoM)

8:30 CPI Ex Food & 0.0% to 0.4% 0.1% 0.2% 0.0% AZN AstraZeneca: Favorable vote
am Energy (MoM) from FDA advisory committee on
benefit/risk of CRESTOR
8:30 Consumer Price Index 1.6% to 2.1% 1.8% -0.2% 1.8%
(rosuvastatin calcium) in
am (YoY)
JUPITER study (46.10 +0.32)
8:30 CPI Ex Food & 1.7% to 2.2% 1.8% 1.7% 1.7%
am Energy (YoY) Dubai's $10 bln cash came through
bond sale – Reuters
8:30 Current Account -$115.1B to - -$107.5B -$98.8B -$108.0 B
am Balance $99.5B
Regulators to give banks Basel
8:30 Housing Starts 540K to 620K 574K 529K 584K grace period, sources say -
am Reuters.com
8:30 Building Permits 545K to 650K 570K 552K 574K
am
TOT Total: Hydrocarbon discovery
on the OPL 223 license (62.85 )
10:30 US Crude Oil -3500K to -1000K -2000K -3823K
am Inventories Sweden keeps key interest rate at
0.25% - AP
10:30 US Gasoline -1000K to 2000K 1300K 2253K
am Inventories
U.K. jobless claims slip in
10:30 US Distillate -3000K to 600K -500K 1619K November – WSJ
am Inventory
Greece privately places 2 bln euros
10:30 US Refinery 0.50% to 1.50% 0.30% 1.39%
am Utilization
of 5-yr FRNs - Reuters.com

2:15 FOMC Rate Decision 0.25% to 0.25% 0.25% 0.25% QCOM Qualcomm removed from
pm Top Picks Live List at Citigroup;
Intel (INTC) added
UPGRADES & DOWNGRADES GGWPQ Gen Growth Prop
announced Bankruptcy Court
STOCKS UPGRADED confirmation of the plans of
BROKERAGE reorganization for 194 debtors
COMPANY RATINGS CHANGE PRICE TARGET
FIRM owning 85 regional shopping
Telus (TU) UBS Neutral >> Buy 29.28 centers (9.83 )

ReneSola (SOL) Morgan Stanley Equal Weight >> Overweight 4.50 AMTD TD Ameritrade: Trading
activity beginning to slow; tgt cut
Canadian Natrl (CNQ) Goldman Buy 66.18
to $20 from $21 at FBR Capital
Corning (GLW) Calyon Outperform >> Buy 18.85
following Nov client metrics
(18.25 )
STOCKS DOWNGRADED
IMA Inverness Medical profiled in
BROKERAGE
COMPANY
FIRM
RATINGS CHANGE PRICE TARGET New America section of IBD
(41.85 )
Senior Housing (SNH) Robert W.Baird Neutral 21.56 21

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 EARNINGS

SAM Boston Beer Co raises FY09 EPS guidance to $2.05-2.35 vs. $2.06 consensus, up from $1.75-2.05
(42.65 +0.23)

WFC Wells Fargo common stock offering raises $12.25 bln (25.66 +0.17)

CIE Cobalt International Energy prices 63.0 mln share IPO at $13.50/share, below the expected $15-17 range

ING ING capital increase was 97% subscribed - WSJ (9.44 )

JOYG Joy Global beats by $0.19, beats on revs; guides FY10 EPS in-line, revs in-line (55.37 )

TMH Team Health Holdings prices 13.3 mln share IPO at $12.00 per share; co was originally expected to offer
20.0 mln shares

SAP SAP AG tgt cut to $44 from $49 at Wedbush as recent SaaS initiative could be risky; they would prefer the co
to acquire an SaaS vendor over investing internally (44.74 )

BHB Bar Harbor Bankshares priced an 800K share common stock offering at $27.50/share (28.02 )

KIM Robert Baird changes their rating on select Real Estate shopping center stocks
The firm is upgrading Saul Centers (BFS) to Outperform from Neutral and raises their tgt to $36 from $35
based on the company's high-quality demographics, attractive intrinsic and relative valuation, and stabilizing
small-shop tenant credit.. They are also downgrading Kimco Realty (KIM) and Realty Income (O) to
Underperform from Neutral with $12 and $23 tgts respectively.

Standard & Poor's Announces Changes to U.S. Indices

S&P MidCap 400 constituent Roper Industries Inc. (ROP) will replace ENSCO International Inc. (ESV) in the
S&P 500, and tw telecom Inc. (TWTC) will replace Roper Industries in the S&P MidCap 400 after the close of
trading on Tuesday, December 22. ENSCO International is changing its legal domicile and relocating its
corporate headquarters from the U.S. to the U.K., making it ineligible for continued inclusion in the S&P 500.

DAL Delta Air Lines tgt raised to $18 at Jesup & Lamont following Analyst Day and updated guidance for 4Q09
(10.95 )

NRG Credit Suisse updates their Electric Utilities sector ratings

The firm reinstates coverage of NRG at Outperform; EXC, RRI, and DYN at Neutral; and downgraded AYE,
EIX, and FE to Neutral from Outperform. Their favored Power stocks are NRG, ETR, and PEG with interest in
FPL, RRI and FE at better entry points.

WFC Wells Fargo: Credit Suisse raises FY10 ests further ahead of consensus following TARP repayment, capital
raise (25.66 )

HON Honeywell guides FY10 revs in-line; reaffirms FY09 guidance (41.25 )

BJ BJ's Wholesale removed from Americas Conviction Sell List at Goldman- Reuters (32.68 )

AXP Q4 credit card losses are generally tracking better than their forecasts; but firm still sees losses rising into
early '10 (40.96 )

JCG J. Crew ests raised at MKM Partners as improving fashions and high quality drive higher spending (45.65 )

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 TECHNICAL ANALYSIS

Symbol S7 S6 S5 S4 S3 S2 S1 PIVOT R1 R2 R3 R4 R5 R6 R7
Sectors
SPX 1091.61 1094.96 1097.02 1100.37 1103.72 1104.75 1105.78 1109.13 1112.48 1113.51 1114.54 1117.89 1121.24 1123.30 1126.65
INDU 10314.09 10341.83 10358.97 10386.71 10414.45 10423.02 10431.56 10459.33 10487.11 10495.64 10504.21 10531.95 10559.69 10576.83 10604.57
NDX 1762.17 1769.73 1774.39 1781.95 1789.51 1791.84 1794.16 1801.73 1809.30 1811.62 1813.95 1821.51 1829.07 1833.73 1841.29
XBD 108.44 109.04 109.41 110.01 110.61 110.80 110.98 111.58 112.18 112.37 112.55 113.15 113.75 114.12 114.72
BKX 40.11 40.65 40.98 41.51 42.05 42.21 42.38 42.91 43.45 43.61 43.78 44.31 44.85 45.18 45.71
TRAN 4068.36 4085.79 4096.56 4114.00 4131.43 4136.82 4142.18 4159.64 4177.09 4182.46 4187.84 4205.28 4222.71 4233.48 4250.92
OIX 657.85 661.19 663.26 666.61 669.95 670.99 672.02 675.37 678.72 679.75 680.78 684.13 687.47 689.54 692.89
OSX 180.81 182.64 183.77 185.59 187.42 187.98 188.54 190.37 192.20 192.76 193.33 195.15 196.98 198.11 199.93
XNG 513.65 515.85 517.21 519.41 521.61 522.29 522.97 525.17 527.37 528.05 528.73 530.93 533.13 534.49 536.69
CYC 786.39 792.20 795.79 801.60 807.41 809.21 810.99 816.81 822.63 824.42 826.21 832.02 837.83 841.42 847.23
UTY 418.79 420.13 420.95 422.28 423.62 424.03 424.44 425.77 427.11 427.52 427.93 429.26 430.60 431.42 432.75
DRG 304.89 305.73 306.26 307.10 307.94 308.21 308.46 309.31 310.16 310.42 310.68 311.52 312.36 312.89 313.73
RLX 402.48 404.48 405.71 407.72 409.72 410.34 410.95 412.96 414.96 415.58 416.19 418.20 420.20 421.43 423.44

Tradeables

SPY 109.58 109.93 110.15 110.50 110.85 110.96 111.07 111.42 111.78 111.88 111.99 112.34 112.69 112.91 113.26
DIA 103.43 103.69 103.85 104.11 104.37 104.45 104.53 104.79 105.05 105.13 105.21 105.47 105.73 105.89 106.15
QQQQ 43.38 43.57 43.69 43.88 44.07 44.13 44.19 44.38 44.57 44.63 44.69 44.88 45.07 45.19 45.38
QLD 53.27 53.75 54.05 54.52 55.00 55.15 55.30 55.77 56.25 56.40 56.55 57.02 57.50 57.80 58.27
IWM 59.59 59.87 60.05 60.33 60.61 60.70 60.79 61.07 61.35 61.44 61.53 61.81 62.09 62.27 62.55
OIH 110.76 111.96 112.70 113.90 115.10 115.47 115.84 117.04 118.24 118.61 118.98 120.18 121.38 122.12 123.32
XLE 54.90 55.16 55.32 55.59 55.86 55.94 56.02 56.29 56.55 56.63 56.71 56.98 57.25 57.41 57.68
FAZ 18.74 19.05 19.25 19.57 19.88 19.98 20.08 20.40 20.71 20.81 20.91 21.23 21.54 21.74 22.06
FAS 65.17 66.37 67.11 68.30 69.50 69.87 70.24 71.43 72.63 73.00 73.37 74.56 75.76 76.50 77.69
SRS 7.66 7.71 7.74 7.80 7.85 7.87 7.88 7.94 7.99 8.01 8.02 8.08 8.13 8.16 8.22
SDS 34.40 34.61 34.74 34.96 35.17 35.24 35.30 35.52 35.73 35.80 35.86 36.08 36.29 36.42 36.64
USO 35.11 35.27 35.37 35.52 35.68 35.73 35.78 35.93 36.09 36.14 36.19 36.34 36.50 36.60 36.75
SKF 23.67 23.93 24.09 24.35 24.61 24.69 24.77 25.03 25.29 25.37 25.45 25.71 25.97 26.13 26.39

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