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

ValuEngine is a fundamentally-based quant research firm in Newtown, PA. ValuEngine

covers over 7,000 stocks every day.

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

picks, and commentary can be found HERE.

September 7, 2010 – Home on the Ranges following early September Moves

The yield on the 10-Year US Treasury is between my annual value level at 2.813 and my
quarterly risky level at 2.495. Gold’s is between my semiannual pivots at $1218.7 and $1260.8
with my monthly risky level at $1263.8. Crude oil is between its August 25th low at $70.76 and
my annual pivot at $77.05. The euro is between its August 24th low of 1.2591 and its 50-day
simple moving average at 1.2834, which is a negative for stocks. The major equity averages
still straddle monthly pivots at 10,164 on Dow Industrials, 1074.9 S&P 500, 2196 NASDAQ, 4364
Dow Transports and 652.82 on Russell 2000. The Dow is between my annual pivot at 10,379 and
my quarterly risky level at 10,558.
10-Year Note – (2.706) My annual value levels are 2.813 and 2.999 with a daily pivot at 2.684 and
monthly, weekly, quarterly and semiannual risky levels at 2.562, 2.507, 2.495 and 2.249.

Courtesy of Thomson / Reuters

Comex Gold – ($1248.2) Weekly, semiannual, quarterly and annual value levels are $1223.7,
$1218.7, $1140.9 and $1115.2 with daily, semiannual and monthly risky levels at $1257.5, $1260.8
and $1263.8. Note that gold is still overbought on its daily chart.

Courtesy of Thomson / Reuters

Nymex Crude Oil – ($74.34) My monthly pivot is $74.45 with weekly, annual and semiannual risky
levels at $76.76, $77.05 and $83.94.

Courtesy of Thomson / Reuters

The Euro – (1.2893) Quarterly and monthly value levels are 1.2167, 1.1721 and 1.1424 with a daily
pivot at 1.2854, and weekly and semiannual risky levels at 1.3168 and 1.4733.

Courtesy of Thomson / Reuters

Daily Dow: (10,448) Monthly and quarterly value levels are 10,164 and 7,812 with daily and annual
pivots at 10,339 and 10,379, and weekly, semiannual and annual risky levels at 10,515, 10,558 and
11,235. My annual risky level at 11,235 was tested at the April 26th high of 11,258.01. The 50-day
simple moving average is 10,266 with the 21-day at 10,290, and 200-day simple moving average
as resistance at 10,451, which was tested on Friday.

Courtesy of Thomson / Reuters

FDIC Quarterly Banking Profile – Headline Analysis
• Quarterly Earnings Are Highest in Almost Three Years
• Reduced Loan-Loss Provisions Boost Net Income – There is still a huge gap between
Noncurrent Loans and Loan-Loss Reserves, but the coverage ratio has stabilized. The policy of
“extend and pretend” with regard to bad loans will com back and haunt community and regional
banks in the quarters ahead.
• Noncurrent Loans Post First Decline in More than Four Years – This is a result of the
“extend and pretend” policy that keeps many bad loans current.
• The Number of FDIC-Insured “Problem” Banks Institutions increased to 829 from 775 and
with the number of institutions declined to 7,830, which means that the percentage of “Problem”
Banks rose to 10.6% from 9.8%.
Bank Lending to Small Businesses
• Small businesses do not see an economic opportunity to expand given the unknowns of
healthcare costs and tax policy.
• Banks do not want the risk of extending new business loans given the same economic
uncertainties.
• Banks are shunning deposits based upon the ridiculously low rates being offered for money
market funds, bank CDs and passbook savings accounts.
That’s today’s Four in Four. Have a great day.

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

Send your comments and questions to Rsuttmeier@Gmail.com. For more information on our products
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As Chief Market Strategist at ValuEngine Inc, my research is published regularly on the website www.ValuEngine.com.
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