The Red Roadmaster’s Technical Report on the US Major Market Indices + ™ Featuring: Crude Oil, Natural Gas, Gold, Silver and Forex Technical Up-dates
Vol. 101909 # 1 Copyright October 19, 2009
Date Line: Bangkok, Thailand
The Red Roadmaster™ Paul A. Ebeling, Jnr. Editor/Compiler/Analyst/Commentator
Fall Edition # 6
October 19, 2009 6:00 AM US EDT Dear Reader, You can read timely Market Reports and Hot Topics daily and weekly on www.livetradingnews.com , www.dynamitecaps.com, www.pinnacledigest.com and www.stockpreacher.com as I round-up relevant global market news and technical analysis up-dated daily. Today’s Stock Talk list includes: Apple, Inc (APPL), Caterpillar, Inc. (CAT), Estée Lauder Company (EL), Texas Instruments (TXN), and Wells Fargo & Company (WFC).
Alert: I will be traveling on October 20 and 21, so the next edition of Stock Talk will be published on October 22, 2009. See them all at www.livetradingnews.com, www.pinnacledigest.com, http://stockpreacher.com/stocktalk and www.dynamitecaps.com Check out www.dynamitecaps.com for Don Futura’s very market savvy commentary. Listen to "The Red Roadmaster" AKA Paul A. Ebeling, Jr., on the Big Biz Show with Bob "Sully" Sullivan every Thursday at 1:40p PST on the CBS/Business Talk Radio Network. Go to www.bigbizshow.com for your local listing and or go to www.livetradingnews.com to tune in Live.
Re-cap of the US Stock Market Action for the week ending October 16, 2009 The US Stock Market's 7 month rally is clearly on track, as stocks stopped to breathe Friday after a terrific week's action when all ten of the sectors gained. The advance was led by energy companies (+5.2%) and materials (+2.2%). Telecom (+0.1%) and consumer staples (+0.2%) underperformed on a relative basis. Fact: Since hitting the March 9, 2009 low the S&P 500 has gained 0.31% a day on average, that is 3 times faster than the last market recovery in 1982, which averaged 0.12% per day rise. This market has blown through the â€œRecordsâ€?. Earnings reports for this coming week likely to keep the Bull Charging North. Overall the US indexes gained for the 2nd straight week with the S&P 500 +1.5%, the DJIA + 1.3% and the NAS + 0.8%. US stocks closed lower Friday after results from General Electric Co, and Bank of America Corp seemed to point to an uneven economic recovery in the USA. GE reported a 20% drop in revenue, and Bank of America posted a US$1B loss for Q-3. Bank of America's shares fell 4.6% to US$17.26, and GE dropped 4.2% to US$16.08 Friday's results contrasted with those of JPMorgan Chase & Co, and Intel Corp, earlier in the week, racing past Wall Street forecasts, pushing the DJIA to a close above 10,000 for 2 days running. The DJIA shed 67.03 pts, or 0.67%, to close at 9,995.91, the S&P 500 dropped 8.88 pts, or 0.81%, to close at 1,087.68, and the leading NAS closed minus 16.49 pts, or 0.76%, on the day 2,156.80. Volume and Breadth: Trade was moderate on the NYSE, with 1.39B/shrs changing hands, below last year's estimated daily average of 1.49B/shrs, and on the NAS, about 2.23B/shrs traded, below last year's daily average of 2.28B/shrs. Decliners outnumbered advancers on the NYSE by 1,962 to 1,041, and declining stocks beat advancers on the NAS, by about 1,828 to 837. Earnings will remain in focus this week, with added attention placed to companies' top lines + commentary regarding the economic outlook. Index
Started Week Ended Week
Stocks to Watch Today
Apple, Inc (APPL), Caterpillar, Inc. (CAT), Estée Lauder Company (EL), Texas Instruments (TXN), and Wells Fargo & Company (WFC).
See them all in Monday’s edition of Stock Talk. All the best, Red
The Most Asked Question Last Week Big Q: Red, how do you find a stock to trade? The Big A: That is the least of my concerns. I am always most interested in where will I exit if and when I am wrong on the direction. st
Once that has been fixed, I look for the 1 level of reward. Those are the Key factors in my work, and Technicals not fundamentals form the discipline for my trades and control the action. One of the reasons many losing traders wait so long to seek help is that they believe the cost to be out of reach. I am aware that stock market trading coaches can charge a lot, but my e-book Knowledge is Power is Free, Red’s Edge and in the Trenches, a weekly feature on www.livetradingnews.com and www.stockpreacher.com is Free; down load it now if you have not already! It is a fact that we all will pay for our trading education one way or another. Again, you can engage a coach, attend investing seminars or you can study hard and plan your work and work your plan. The rest is up to you! For news and information please go to www.livetradingnews.com and sign up for RSS feeds, Twitter, and the Hot List, its Free.
Red’s Edge and In the Trenches
Last week, I talked about what a trader may wish to consider when determining what issue to trade, i.e. ETFs to trade whole markets or sectors as opposed to trading single stocks and noted some differences in volatilities and the comparative risk. This week the focus is on choosing individual stocks to trade. There are lots of ways to select a stock to trade; for example: a tout, a cold call from a broker, a broker recommendation, from a subscription service or as I use, a customized filter or data scan. Whatever the source, each way has some merit. 3
Let’s look at them: 1. The Tout. The problem with many of them is that the stock is already on the move, and probably is too late to jump on- board. 2. The Broker Suggestion: more often than not, they are likely unrelated to a good entry point, i.e. one that has a suitable reward to risk ratio. Another broker problem is that they call and say to buy, but rarely call to suggest it is time to sell. 3. Subscription Service: the reason for a service is not to recommend a trade, but to draw the subscribers' attention to a particular issue and show how to utilize specific strategies. The subscriber’s responsibility is to access the risk, allocate the cash, and to anaylize the suitability to the “plan”. Remember, plan your work and work your plan. 4. The Personal Filter or Scans. This will recognize stocks in your plan. It is important to understand that when you lock in on an individual stock to trade, it is only the beginning; a trader must analyze and decide if the candidate fits The Plan. Here is the Key point: no matter how the trader selects a candidate, the trader makes important decisions before ever pulling the trigger on the trade. Download “Knowledge is Power,” Red’s Road to Riches, It is Free. The difference between winners and losers is that the winners take it seriously and they always add to their knowledge. They read, study, learn nuances, attend seminars, and sometimes use a coach or a mentor. Successful traders are not those who say coaching or seminars are too expensive. They understand that they can recoup such costs in a single trade. The unsuccessful folks have the opposite POV, shying away from and ignoring the benefits of a trading education because of the minimal cost. Remember, Knowledge is Power; it will change your life for the better. Red
My pal Wally Stein’s Words of Wisdom Buy Low Sell High, Wally’s Lullaby Argentum et aurum comparenda sunt (Gold and silver must be bought)-- —Frank Sanders, analyst, www.moneychanger.com Sooner or later, those who win are those who believe they can! Red’s Quote of the Week: “The future is not only a place where we are going, but a place we are creating. The paths are made, not found or discovered. And the activity of making them changes both the maker and the destination.” Paul A. Ebeling Jnr. AKA The Red Roadmaster
This Week’s In View In View: US Buyers are back for Luxury Goods Spending in the USA on luxury goods and services spiked 29% in Q-3 from the previous Q-2, as consumers with the highest incomes unleashed pent-up demand, according to a report from Unity Marketing. Spending among 1,067 consumers with average annual income of US$228,800 rose to US$18,826 each in the three months ended in September from US$14,554 a quarter earlier, the Stevens, Pennsylvaniabased luxury-market research firm said Saturday. Shoppers cut spending by 3.2% in the Q-2 and spent US$13,429 in Q-4 Y 2008. The increase was driven by consumers with the highest income levels, starting at US$250,000 a year, said Pam Danziger, Unity’s Marketing’s president. Spending was strongest in the home, travel and dining segments, she said. The wealthy curbed purchasing earlier this year because of Wall Street job cuts, lower home values and volatile financial markets. “No question that this quarter’s spending increase is good news for luxury marketers,” Danziger said in a telephone interview today. “Many affluent consumers returned after sitting on the sidelines for a year. However, the richest are few in number, 2.5 million households, so competition will be fierce to win their attention.” The MasterCard Report st
US luxury sales rose 3.4% to US$891M in September from a year earlier, the 1 such gain since August 2008, according to figures provided Saturday by credit-card company MasterCard in its SpendingPulse report. Last month, those sales fell 13% from the previous year. The luxury category covers apparel, leather goods and department-store sales at the highest 10% of prices. SpendingPulse measures retail sales across all payment forms, including cash and checks. United Marketing said purchases increased in all but three of the 22 product and service categories it tracks. The highest-income group spent an average of US$43,111 in Q-3 and the lowest-income group tracked, with earnings of US$100,000 to US$149,999, spent US$10,423. The three categories that did not gain were fashion accessories, fashion apparel and art, Danziger said. Gains in confidence among luxury consumers, meanwhile, slowed, Unity Marketing said.
The researcher’s luxury confidence index rose 1.6 pts to 75.9, after jumping 18.6 pts to 74.3 in the previous quarter. That index highed at 113.2 at the end of March 2006. Its low was 40.3 in September 2008. The Benchmark Index started at 100 in January 2004. The findings were based on a survey conducted among adults aged 24 to 70 with income of at least US$100,000 from Oct. 2 to Oct. 7. Note: Unity Marketing said that it does not calculate a margin of error. It plans to publish the survey results Oct. 19.
Some Hot Topics for this Week BRIC News: Asia’s richest man takes huge pay cut Mukesh Ambani, Asia’s richest man, the chap that is spending about US$1B to build a lavish 27 storey house and buy his wife a luxury Airbus jet, this week gave himself a 66% pay cut. In cutting his compensation to “set a personal example of moderation in executive compensation”, Mr Ambani, who controls Reliance Industries, became the first high profile Indian executive to heed his government’s call for austerity in corporate compensation. Ranked by Forbes as the world’s seventh wealthiest man, the Indian billionaire said his compensation for the 2008-09 financial year would be Rs150m (US$3.2M). The board of his petrochemical company said other executives’ pay would also be capped. The move comes as India celebrates Diwali, when people pray for prosperity. Mr Ambani, who has about US$19.5B in personal wealth (according to Forbes), is not likely to run into liquidity problems.“Austerity isn’t his style,” said one local analyst. “For God’s sake, he’s building a 27storey home.” Mr Ambani’s skyscraper could become one of the world’s most lavish private homes, a “palace in the air” with six levels of parking, a pool and a helipad. Overall, Indian executives have not been under as much populist pressure to cut their pay as their counterparts in the USA and EU. Tax experts told the Financial Times that Indian tycoons’ salaries and bonuses are not their main income and many top executives prefer to earn low wages, which are taxed at about 30%, and instead be remunerated more with dividends, which are tax free. Mr Ambani’s decision to trim his wages came on the heels of last week’s warning by Salman Khursheed, India’s corporate affairs minister, that the government would watch the level of executive compensation. 6
Crude Oil hits US$78 bbl, the 2009 high US Crude Oil pushed above US$78 bbl Friday, reaching a 2009 high, while Gold prices slipped after hitting a record high during the week. Nymex November West Texas Intermediate Crude settled at US$78.53 bbl, + 95 cents on the day, and up 9.4% this week. ICE December Brent Crude had been down but closed at US$76.99 bbl, + 76 cents on the day and up 10% for the week. Analysts said Crude Oil broke out of the tight US$65 to US$75 range that dominated trading all summer. Gold rose 0.3% to $1,053 oz, up 0.4%this week, after it hit a record US$1,070.40 oz Wednesday, up 21.9% this year on uncertainty about the outlook for the US$ and the Federal Reserve’s monetary policy.
The USA’s federal deficit hits record high of US$1.4T The USA’s federal deficit for 2009 fiscal year reached a record high of US$1.42T, the Treasury Department announced last Friday. The US government imbalance for the fiscal year ending Sept. 30, 2009, more than tripled last year's record. As a portion of the economy, the deficit accounted for about 10%, the highest since World War II. For fiscal year 2009, the government collected US$2.1T in revenues, a 16.6 % drop from Y 2008, while government spending jumped to US$3.52T up 18.2% over Y 2008. The Treasury Department projected that the deficits would total US$9.1T over the next decade unless corrective action is taken. Treasury Secretary Tim Geithner pointed to the rising federal debt as a result of the government's actions to tackle the worst economic recession since the Great Depression of the 1930s. The Obama Administration launched a US$787B stimulus bill to boost the economy and another US$700B to stabilize the financial system since the beginning of the year. Besides, Geithner said, the debt was also a heritage of the George W. Bush period, and that the 2009 deficit was largely the product of the spending and tax policies inherited from the previous Administration, according to the department
A Luxury flat in Hong Kong sets new World price record A luxury flat in Hong Kong has set the new world record by fetching a price of about 767,000 HK dollars (Us$113,900) per square meter, local media reported last Thursday. The luxury duplex located on the 68th floor, which has five bedrooms and a total floor area of 572 square meters (6,158 square feet), was sold for 439 million HK dollars (US$56.3MM), developer Henderson Land said Wednesday. In terms of salable area, the price was about US$121,000 per square meter, the South China Morning Post reported. A luxury flat in London had set the previous world record at 6,000 pounds for each square foot of salable area (US$105,090 per square meter). Luxury flats in the same project in West Mid-Levels, Hong Kong, have been fetching stunning prices in recent days. Another flat on the same floor with a floor area of 571 square meters went for 397million HK dollars (US$50.9M). The real estate prices in Hong Kong is now back at their mid-2008 level after a brief period correction amid the global economic downturn, but they were still below the high prices recorded in 1997.
US$ Taps 14 Month Low on Outlook for Fed’s Target Rate The US$ dropped the most against the Euro in more than a month and reached a 14-month low on speculation the US Federal Reserve will trail other central banks in boosting interest rates. The British Pound Sterling rose against all of its major rivals this week on signs the Bank of England may suspend quantitative easing, reducing concern it’s flooding the market with new currency. The USD slid as minutes of the Fed’s September meeting showed some policy makers were open to boosting purchases of mortgage backed securities. The “greenback” may extend its decline when the central bank releases its Beige Book business survey next week. “There’s no good news for the dollar,” said Dale Thomas, head of currencies in London at Insight Investment Management, which oversees about US$121B. “The underlying trend is still for a gradual recovery of the global economy and a weak dollar.” The USD will remain a “funding currency” for investors to buy higher-yielding assets as U.S. borrowing costs stay low, Thomas said.
The USD fell 1.2 % this week to US$1.4905 per Euro, from $1.4732 on Oct. 9, in the biggest drop since a 1.9% decline during the week ended Sept. 11. The US currency touched $1.4968 on Oct. 15, the weakest level since Aug. 13, 2008. The Yen declined 1.2% to 90.89 vs the USD, from 89.78, in its biggest decline since Aug. 7. Japanâ€™s currency depreciated 2.3% to 135.48 per Euro, compared with 132.25 a week earlier.
On the Healthcare Front: The New flu can kill fast The new H1N1 flu is "strikingly different" from seasonal influenza, killing much younger people than ordinary flu and often killing them very fast, World Health Organization officials said Friday. A review of studies done during the 7 months the virus has been circulating shows it is usually mild, but can cause unusual and severe symptoms in an unlucky few, according to a WHO-sponsored meeting in Washington this week. "Participants who have managed such cases agreed that the clinical picture in severe cases is strikingly different from the disease pattern seen during epidemics of seasonal influenza," WHO's Dr. Nikki Shindo told the meeting. Swine flu was declared a pandemic in June and has been circulating globally. WHO stopped trying to count cases, as there are nowhere near enough tests to formally diagnose everyone who gets sick. Separately, on Friday, Dr. Anne Schuchat of the U.S. Centers for Disease Control and Prevention said 86 U.S. children had died of swine flu, most in the 5- to 17-year old age group that normally escapes serious bouts with flu. "In severe cases, patients generally begin to deteriorate around three to five days after symptom onset. Deterioration is rapid, with many patients progressing to respiratory failure within 24 hours, requiring immediate admission to an intensive care unit," Shindo said. While most such patients need to be put on ventilators right away, some are not helped by this treatment, Shindo noted.
At the Movies with The Hollywood Reporter 'Wild Things' nabs US$32.5M opening Film beats expectations as 'Citizen' takes 2
Moviegoers went wild for Warner Bros.' "Where the Wild Things Are" during the weekend, corralling an estimated $32.5 million atop the domestic box office in an opening that outpaced even bullish 9
expectations for the children's book adaptation. The Overture Films-distributed crime thriller "Law Abiding Citizen" similarly exceeded expectations, bowing with $21.3 million in second place. A third wide opener -- Sony Screen Gems' horror thriller "The Stepfather" -- debuted softly with $12.3 million in fifth place. Paramount's expansion of "Paranormal Activity" into wide release went abnormally well as the low-budget ghost story scared up a mind-bending $20.2 million from just 760 theaters to nab third place on the frame. "Paranormal" totes a $33.7 million cume ahead of a planned further expansion Friday. Universal's ensemble comedy "Couple's Retreat" fell just 48% in its sophomore session to $17.9 million in fourth place. The leggy performance by "Couples" advanced its 10-day cume to $63.3 million. The weekend's top 10 finishers collectively rung up almost $127 million, or a big 59% more than top performers during a comparable frame last year, according to Nielsen EDI. In a limited bow, Vivendi Entertainment's romantic-drama anthology "New York, I Love You" unspooled in 125 locations and grossed $372,107, or an acceptable $2,976 per site. Apparition bowed urban action spoof "Black Dynamite" in 70 theaters and grossed $140,986, or a muted $2,014 per venue. Elsewhere in the specialty market, Focus Features added 76 play dates for a total of 82 for the Coen brothers' "A Serious Man" and grossed $860,257. That represented an encouraging $10,491 per engagement and shaped a $1.9 million cume for the well-reviewed dark comedy. Sony Pictures Classics' Colin Firth starrer "An Education" added 15 theaters for a total of 19 and grossed $266,044, or an impressive $14,002 per venue, with cume of $504,974.
This Weekâ€™s Economic Data October 20: Tuesday Building Permits, September (08:30): 590K expected, 579K past Housing Starts, September (08:30): 610K expected, 598K past PPI, September (08:30): 0.0% expected, 1.7% past Core PPI, September (08:30): 0.1% expected, 0.2% past
October 21: Wednesday Crude Oil Inventories, 10/16 (10:30): 0.33M past
October 22: Thursday Initial Claims, 10/17 (08:30): 517K expected, 514K past Continuing Claims, 10/10 (08:30): 5990K expected, 5992K past Leading Indicators, September (10:00): 0.9% expected, 0.6% past FHFA Housing Price I, AUG (10:00): 0.3% expected, 0.3% past
October 23: Friday Existing Home Sales, September (10:00): 5.35M expected, 5.10M past
Snap Shot of the Major US Market Indices
NAS Stats: -16.49 points (-0.76%) to close at 2156.8 Volume: 2.174B (+4.32%) Up Volume: 535.208M (-373.124M) Down Volume: 1.659B (+453.467M) A/D and Hi/Lo: Decliners led 2.14 to 1 Previous Session: Decliners led 1.28 to 1 New Highs: 116 (-59) New Lows: 8 (-3)
S&P 500/NYSE Stats: -8.88 pts (-0.81%) close 1087.68 NYSE Volume: 1.386B (+2.11%) Up Volume: 334.478M (-358.762M) Down Volume: 1.041B (+417.427M) 11
A/D and Hi/Lo: Decliners led 1.91 to 1 Previous Session: Advancers led 1.04 to 1 New Highs: 251 (-303) New Lows: 36 (-25)
DJIA Stats: -67.03 pts (-0.67%) close 9995.91 Volume DJIA: 307M shs Friday. Options Expiration Friday gave us the expected volume spike.
The Charts* The NAS Charts: http://stockcharts.com/h-sc/ui?s=NAS The S&P 500 Chart: http://stockcharts.com/h-sc/ui?s=sp500 DJIA Chart: http://stockcharts.com/h-sc/ui?s=djia Stock Chart School: http://stockcharts.com/school/doku.php?id=chart_school Stock Charts Glossary: http://stockcharts.com/school/doku.php?id=chart_school:glossary_s *Charts from www.Stockcharts.com MARKET SENTIMENT The Sentiment Indicators: These indicators are psychological indicators that attempt to measure the degree of bullishness or bearishness in a market. These are contrary indicators and are used in much the same fashion as overbought or oversold oscillators. Their greatest value is when they reach upper or lower extremes. 1. 2. 3. 4.
VIX: 21.43; -0.29 VXN: 22.22; -0.29 VXO: 21.2; -0.1 Put/Call Ratio (CBOE): 0.76; +0.07
Note: Are you watching the VIX? It always tells us when we are moving back to a more rational market. *The Market Volatility Index (VIX) measures the volatility of the market. A recent news story described it as "the options market's gauge of investor fear." Traders use VIX as a general inverse indicator of market volatility and sentiment. High numbers mean that there's excess bearishness, and low numbers indicate excess bullishness. The VIX is updated intra-day by the Chicago Board Options Exchange (CBOE), using Standard & Poorâ€™s 500 Index (SPX) bid/ask quotes. It was created in 1993. **The CBOE NAS Volatility Index (VXN) employs the same formula used to calculate $VIX, which is based on the implied volatility of S&P 500 index options. This formula is derived from a basket of put and call options. Some are out of the money, some in the money, and some at the money. The resulting $VXN represents the implied volatility of a hypothetical 30-day option that is at the money.
***The VXO is the ticker created to track the "original VIX" that was calculated using the prices of S&P 100 options. The new VIX uses the ticker $VIX and is calculated using the prices of S&P 500 options. The fundamental nature of the VXO is the same as the VIX, but it is less robust and not as simple as the VIX. Bulls vs. Bears: Bulls: the Bulls are at 48.9% retreating a bit from the 50.6% the previous week. The selling sent the Bulls back some but the bounce will bring them our charging again. They are well over the 35% level that is the threshold for what is considered a Bullish territory. For your reference: The Bulls bottomed in the summer of 2006, the last major round of selling ahead of this 2007 high, near 36%; 35% is considered Bullish. Bears: the Bears are at 24.4%, raising a bit on the market selloff, and up from 23.6%. That puts them back up to the level they touched three weeks ago and showing sufficient pessimism. The Bears hit a low of 21.3% on this leg. For your reference: Bearishness hit a 5-year high at 54.4% the last week of October. Chartist Plot Your Points Support/Resistance
NAS: Close 2156.80 Resistance: 2167 from the July 2008 intra-day low 2168 the September 2009, intra-day high 2169 the March 2008 closing low (double bottom) 2177 a low from March 2008 2210 from September 2008 to 2212 2275 - 2278 from the February 2008 and April 2008 lows Support: 2155 is the March 2008 intra-day low The March up trend line at 2145 The 18-day EMA: 2124 2099 the mid-September 2008 closing low 2070 the September 2008 intra-day low 13
The 50-day EMA: 2064 2060 the August 2009 high 2016 the early August 2009 high 1984 from late September 2009 1962 the bottom of the August 2009 range. 1947 the October 2008 gap down point 1897 the October post gap intra-day high. 1880 the June 2009 high 1862 the July 2009 high 1786 the November 2008 intra-day high 1780 the November 2008 closing high 1773 the May 2009 intra-day high 1770 the mid-October interim high The 200-day SMA: 1760
S&P 500: Close 1087.68 Resistance: 1106 the September 2008 low 1133 from a September 2008 intra-day low 1185 from late September 2008 1200 from the July 2008 low Support: 1080 the September 2009 high 1070 the late September 2009 high The 18-day EMA: 1066 14
The March/July up trend line at 1047 1044 the October 2008 intra-day high 1040 the August 2009 high The 50-day EMA: 1036 1018 early August intra-day high 1006 the November 2008 high 992 the August 2009 consolidation low 956 the June intra-day high 944 the January 2009 high 935 the January closing high 932 the July high 930 the May high 919 the early December 2008 high
The 200-day SMA: 910 DJIA: Close 9995.91 Resistance: 10,365 the late September 2009 low 10,609 the Mid-September 2008 interim low 10,963 the July 2008 low Support: 9918 the September 2008 high 9855 the early September high in its lateral range 9835 the late September 2009 high The 18-day EMA: 9810 15
9654 the November 2008 high 9625 the October 2008 closing high 9620 the August 2009 high The 50-day EMA: 9561 9387 the mid-October 2009 high 9116 the August 2009 low 9088 the January 2009 high 8985 the closing low in the mid-2003 consolidation 8934 the December 2008 closing high 8878 the June 2009 high 8829 the late November 2008 high 8626 from December 2002 8588 the May 2009 high 8581 the July 2009 high The 200-day SMA: 8529
What to expect this week and down the line…
Last Friday’s action was Normal after the new Bull Charge on a Gap open to the new high. This week could see a bit of testing as the earnings reports are released as we enter earnings season in earnest. If there is a bit of testing it is nothing to complain about as the action sets up some new plays after last week's breakouts. So far the liquidity keeps coming into the market (remember in the Spring I talked about the huge money on the sidelines and that into the end of the year the markets would see “panic” buying by this Rally’s non believers), and with the year end run beginning that money will have to come in to make the books look as good as possible for those fund managers that refused to get with the program. To me that augurs buying at each dip with a follow up move North into year-end, if earnings do not disappoint. As I have said in this section and on the radio (the Big Biz Show with Bob "Sully" Sullivan every Thursday at 1:40p PST on the CBS/Business Talk Radio Network. Go to www.bigbizshow.com for your local listing). 16
Since the market bottomed on March 9, 2009, this liquidity rally is firmly in place unless Washington does an about-face on policy. The Stock Market can Rally as long as there is lots of capital with no place to go. When I am asked about this action, as I am constantly, here in Asia, I give a clear and simple answer: interest rates at 0%, inflation is flat, and there is no place to put the huge sideline money except in stocks and commodities. One savvy observer that I read and respect, recently said: “At some point the liquidity has to dry up, and the hope is that 'natural' forces will take over when it is, or will already be running, so when the liquidity leaves there are no hiccups.” This recovery in fact is not really a recovery after a recession at all, but a Restart after a Black Flag IMO, and with the Race back on, it has the look of being a full-fledged recovery given the improvement rates in the data. Some believe that this move is on borrowed time, but markets most often climb a wall of worry. Our purpose is to make money into this year-end, as the sideline money flows in in a panic. So let’s take what the market gives us and do not look down or up, but straight ahead. Earnings will be in investors' headlights again this week: opening Monday afternoon with Apple (NASDAQ: AAPL) and Texas Instruments (NYSE: TXN) reporting after the Bell. Tuesday morning, expect reports from Caterpillar (NYSE: CAT), Coca-Cola (NYSE: KO), Lockheed Martin (NYSE: LMT), and Pfizer (NYSE: PFE), with Yahoo! (NAS: YHOO) reporting after the Bell. Wednesday look for results from Boeing (NYSE: BA), Continental Air (NYSE: CAL), Eli Lilly (NYSE:LLY), McDonald's (NYSE: MCD), Morgan Stanley (NYSE: MS), Northrop Grumman (NYSE: NOC), and Wells Fargo (NYSE: WFC), with Amgen (NAS: AMGN) releasing results after the Bell. Thursday, AT&T (NYSE: T), Bristol-Myers (NYSE: BMY), Dow Chemicals (NYSE: DOW), Delta Airlines (NYSE: DAL), Merck (NYSE: MRK), Phillip Morris (NYSE: PM), UPS (NYSE: UPS), US Airways (NYSE: LCC), and Wyeth (NYSE: WYE), all report before the Bell. And Amazon.com (NASDAQ: AMZN) and American Express (NYSE: AXP) release after the Bell. And Honeywell (NYSE: HON) and Microsoft (NAS: MSFT) close the week before the Bell on Friday. Have a great week! All the best, Red PS: Savvy market observers are saying play the wrong side of an Obama Administration (like healthcare reform) and you are likely to lose. Red
Red Roadmaster Market Insights on Crude Oil, Natural Gas, Gold and Silver, and Currencies, this week the EUR/USD pair is featured.
Crude Oil prices moving higher, Natural Gas moving lower in 2009 Nymex Crude Oil (CL) 17
Crude Oil rose sharply to 78.75 last week and closed strong. The break of 75.0 resistance confirms that medium term rally has resumed. Initial bias remains on the upside this week and further rise should be seen to 100% projection of 58.32 to 75 from 65.05 at 81.72 next. On the downside, below 76.80 minor support will turn intraday bias neutral and bring retreat, probably to 4 hours 55 EMA (now at 73.98). But downside should be contained by 71.39 resistance turned support and bring another rise. In the bigger picture, the strong break of 75.0 resistance confirms that medium term rebound from 33.2 has resumed and further rally should be seen. Note: that Crude Oil is now in an important resistance zone of 76.77/90.24 (38.2% and 50% retracement of 147.27 to 33.2). As I am expecting rise from 33.2 to conclude in this zone, I will look for sign of loss of momentum in the current action, as well as reversal sign. Nevertheless, a that break of 65.05 is needed to indicate that Crude Oil has topped out, otherwise, further rise is still in view. In the long-term picture, there is no change in the view that fall from 147.27 is part of the correction to the five wave sequence from 98 low of 10.65. While there rebound from 33.2 is strong and might continue, there is no solid evidence that suggest fall 147.27 is completed and I still prefer the case that rebound from 33.2 is merely a corrective rise only. Having said that, strong resistance should be around 76.77/90.24-fibo resistance zone and bring reversal for another low below 33.2 before completing the whole correction from 147.27.
Nymex Natural Gas (NG) Natural Gas continued to consolidate below 5.12 last week but after all, downside is still supported by the 4.35 support. The rebound Friday and the break of 4.75 minor resistance suggest that the pull back might be completed. Initial bias is flipped back to the upside this week for a retest of 5.12 first. A break will bring rally resumption to 38.2% retracement of 13.64 to 2.409 at 6.7 next. But, a break of 4.35 will indicate that a short-term top is formed and will bring deeper pull back instead. In the bigger picture, medium term fall from 13.69 is treated as part of the long-term consolidation pattern that started at 15.78 back in 2005. The whole consolidation might have completed at 2.409 after meeting 100% projection of 15.78 to 4.593 from 13.69 at 2.50. I now prefer the Bullish case as long 55 days EMA (now at 3.973 holds) and expect the current rise from 2.409 to extend further to 61.8% retracement of 13.64 to 2.409 at 9.38 in medium term.
Global Gold and Silver trading higher in 2009
Comex Gold (GC) Gold edged higher to 1072 last week but retreated a bit. A short-term top might be in place with bearish divergence conditions in 4 hours MACD and RSI. Some more consolidation could likely be seen initially this week, with risk of further pull back.
But after all, I expect downside to be contained by 38.2% retracement of 931.3 to 1072 at 1018.3 and bring rally resumption. A move above 1072 I will target 1100 as the next psychological resistance level. In the bigger picture, the strong break of the previous 1033.9 high confirms that long term up-trend in st Gold has resumed. Rise from 681 will likely develop into another set of five wave sequence with 1 wave nd completed at 1007.7, 2 wave triangle consolidation completed at 931.3. st
A rise from 931.3 is expected to extend to 61.8% projection of 681 to 1007.7 from 931.3 at 1133.2 1 and then 100% projection at 1258 next. On the downside, a break of 985.5 support will dampen this Bullish view and will turn focus back to 931.3 support. The long term picture, as I have discussed before, a rise from 681 is treated as resumption of the long term up trend from 1999 low of 253 after interim consolidation from 1033.9 has completed of a expanding triangle. The strong break of 1033.9 resistance affirms this case and may likely augur a 61.8% projection of 253 to 1033.9 from 681 at 1160 and then 100% projection at 1460 level. I will maintain this Bullish view as long as 931.3 support holds.
Comex Silver (SI) Silver edged higher to 18.175 last week but retreated a bit since. With an intra-day top in place, initial bias is neutral this week and some consolidations could be seen. Nevertheless, short-term outlook will remain Bullish as long as 16.785 resistance turned support holds. Above 18.175 will bring rally resumption to 61.8% projection of 13.495 to 17.69 from 15.76 at 18.35 1 and break will target 100% projection at 19.95 next.
However, a strong break of 16.785 will be the first signal that a rise from 12.435 has completed, possibly with bearish divergence conditions in daily MACD and RSI. Focus will then be shifted to 15.76 support for confirmation. The bigger picture, whole medium term rise from 8.4 is still in progress and should extend further towards 19.55 resistance next. However, note that we're not seeing a clear impulsive structure from 8.4 yet and hence, I will treat the rise as part of the long term, wide range, consolidation pattern that started at 21.44 back in Mar 08. In other words, current rise from 8.4 is expected to be limited by 19.55/21.44 resistance zone and bring at least one more medium term fall. On the downside, break of 15.76 support will be the first sign of topping, a break of 12.435 will confirm that rise from 8.4 is finished. The longer term picture, the up-trend from 01 low of 4.01 topped out at 21.44 and subsequent price actions are treated as correction/consolidation to this up trend. Fall from 21.44 completed after drawing support from 8.5 level. However, subsequent rally from 8.4 is not displaying a clear impulsive structure yet and hence, I prefer nd the case that it's just the 2 wave of the wide range consolidation pattern.
Another fall should still be seen for retesting 8.5 before completing the consolidation, but there is strong support at 5.45/8.5 support zone to conclude the consolidation
FOREX Currency Trading
EUR/USD: Momentum Remains To The Upside nd
EURUSD- A 2 week of upside gains the past week saw the pair wiping out its corrective losses and breaking above the 1.4844 level to print a new high of 1.4968, its highest price since Sept 22'08. The challenge now is how EUR reacts as it approaches its big psycho level at 1.50.I believe this should pose a threat at first (as evidenced by its Friday price failure at 1.4968) which could trigger another correction but if this view is voided and a loss of the 1.5000 level materializes, we may witness a run at the 1.5082 level, its Aug 10'08 high and then the 1.5283 level, its May 04'08 low. Its weekly RSI is Bullish and trending higher suggesting further upside though ion overbought zone. On the other side of the Coin: if its price failure at the 1.4968 level builds more downside strength the coming week, risk should shape up towards the 1.4843/42 level, its Sept 23'09 high/Oct 15'09 low. That level is expected to fence off the Bears and turn the pair back up but if that it gives in, the pair could see further declines towards its Oct 12'09 low at 1.4672 with a violation of that level paving the way for further downside pressure towards the 1.4479 level, its Oct 02'09 low and next its MT rising trend line currently at 1.4432. On the whole, EUR retains its broader medium term uptrend but faces the risk of a correction as its approaches its big psycho level at the 1.5000 level
Disclaimer: This report is prepared solely for information and data purposes. Opinions, estimates and projections contained herein are the author's own as of the date hereof and are subject to change without notice. The information and opinions contained herein have been compiled or arrived at from sources believed to be reliable but no representation or warranty, express or implied, is made as to their accuracy or completeness and neither the information nor the forecast shall be taken as a representation for which the author incur any responsibility. The does not accept any liability whatsoever for any loss arising from any use of this report or its contents. This report is not construed as an offer to sell or solicitation of any offer to buy any of the currencies referred to in this report. THE REDROADMASTERâ€™S MAIN RESOURCE FOR TRADING CURRENCIES IS:
To learn more about Forex Currency trading check out http://ads.easyforex.com/Gateway.aspx?gid=110222 the platform of choice for the Red Roadmaster. Small Cap Stocks to Watch this Week Archer Entertainment Media Corporation (AEMC) Archer Entertainment co-presented the Miss Thailand World Pageant last week in Bangkok, Thailand where it announced at a press conference it was outlining plans for construction of a $100 million USD 20
state-of-the-art film studio 20 minutes from Bangkok, with a theme park, hotels, restaurants and its own airstrip. Archer is building a strong brand emanating from Asia to Worldwide. Beginning as a builder of digital cinemas converted from analog, in china, it is emerging as an internet-focused entertainmentmedia hub, with the unusual addition of its own production and distribution activities. Several Asian and European film funds are being raised, aimed at a total of US$500 million to begin filming its slate. Archer st co-sponsored the 1 Worldwide Comedy Film Festival, in Phuket, Thailand, this past June 8-11. The company has 9 feature films in development, as well as a number of TV series, to be cast with American, Canadian, British, Australian and Asian stars and other support actors, international directors, and belowthe-line staff. It is introducing getonline.com, a global database of actors, writers, directors, designers, and other personnel, initially from Asia, introducing thousands of new talent to the worldwide employment market. Preparations are well advanced for a large-budget motion picture, “Kings of the Seas,” a highadventure comedy- drama about the 16th century meeting of East and West in the China Seas, to star actors like Hugh Jackman and Jet Li, The global entertainment market is set to explode with the growing wealth of countries like China and India, whose own films and television projects are becoming more international, if not westernized. The success of recent Chinese films, like “Crouching Tiger,” “Hero,” and others, and the huge recent hit from Danny Boyle set in Mumbai, India, “Slum Dog Millionaire,” presage success for Archer Entertainment Worldwide. www.archeremc.com Currently trading at $0.59/shr. - .01 Support .56. Resistance .63 Technicals are overall Very Bullish The recent Candle Stick analysis is: Very Bullish Latest News: N/A
MMRF: A Life-Saver? MMR Information Systems, Inc., (OTC:MMRF) www.mymedicalrecords.com, could be a life-saver: subscribers get their own web page to list all their medical information; what medications they’re on, possible drug interactions, medical tests already performed, what medical tests NOT to be performed, vaccinations status, list of doctors, who to call in case of emergency in a secure storage solution, which can save lives in an emergency. Consumers carry a card and password and telephone number for paramedics, hospital personnel, police and fire departments to call for immediate access to vital information about an individual’s health situation. MMR offers potential new clients a free 30-day trial. Opportunity abounds for MMRF: Obama healthcare reform mandates web-based record keeping by doctors, hospitals, HMO's, etc., with possibly 37 million more U.S. currently uninsured people to be added to insurance rolls. MyMedicalRecords Pro ("MMRPro") helps doctors enter an EMR system to receive some of the $19 billion in Health Care Stimulus Funds from by the Obama Administration. Subscribers can fax images, documents, and leave voicemail messages, which are uploaded securely. Insurance companies, unions, Healthcare professionals, and employers, use MyMedicalRecords, in both English and Spanish. MMR Information Systems also has a second product; www.myesafedepositbox.com, which stores subscribers important documents; living wills, birth certificates, passports, advance directives and insurance policies, are available anytime, from anywhere. Corporate & affinity groups currently using MMRF technology number over 500,000 people. MMRF uses unique military security and encryption technology to protect subscriber data, built and hosted by the same company that handles transactions for major financial institutions and Fortune 1000 companies, including American Express, First Data Corporation, Wells Fargo, Sprint, Discover, General Motors and Union Pacific. Currently trading at $0.09/shr. + 0.0079 Support .08 Resistance .09 Technicals are Neutral. The recent Candle Stick analysis is: Neutral Latest News: MMR Information Systems and Unis-Tonghe Plan Integration of MMR PHR and MMRPro in Development Project to Market Throughout China 21
COMPLIANCE SYSTEMS CORP (COPI): This is the Company that invented the technology for the government’s “Do-Not-Call,” initiative and provides other compliance technologies, methodologies, and services to the teleservices industry. Its TeleBlock Call Blocking System mandates telemarketers to automatically screen and block outbound calls against federal, state, third party, and in-house do-not-call lists, which violations can cost callers up to $15,000 per call. In ten years and over a Billion calls, not one violation has occurred. The company has a Canadian contract for similar services and intends to expand its reach by complementary acquisitions in the US and abroad. COPI also publishes online guides, including Regulatory Guide, the only on-line, up-to-date compilation of federal and state Do-Not-Call regulations. iHub is buzzing about COPI. http://www.callcompliance.com Currently trading at $0.018/shr. - 0.0009 Support .01 Resistance .02. Technicals are Neutral. The recent Candle Stick analysis is: Neutral Latest News: Form 8-K for COMPLIANCE SYSTEMS CORP http://biz.yahoo.com/e/090922/copi.ob8-k.html
GetFugu Inc. (GFGU) Beginning with its launch on 09/09/09, GFGU debuted on the Android phone platform, followed the next day by Apple’s iPhone. Nokia and Blackberry are next. GetFugu has an intuitive alternative search engine platform that will instantly be accessible to 97% of the over 3.3 billion mobile handsets around the world today. Rather than type a website address or search term into a browser, consumers have four ways to mobile search through tools that use voice (Voice Reality Link or VRL), vision (Augmented Reality Link or ARL), location (Geo Reality Link or GRL) and Hotspotting, no matter what type of phone they own. GetFugu is able to directly connect with any searches they are trying to reach, instead of using Google and going through 50,000 results. A consumer can say “Gap” and instantly be connected with the Gap website. Coke has 13 billion-plus cans out in the world at any given time. With GetFugu, they now have 13 billion digital billboards that consumers can interact with via their mobile devices. GetFugu also supports hotspotting on a mobile application. Consumers can watch a video and hotspot by simply touching the screen, a consumer can search for whatever the person in the video is wearing and link directly to a website where he or she can buy those shoes from the latest video. The market potential for GetFugu is global and includes both national and local advertisers in each area. GetFugu is in licensing discussion with over 50 global companies from the US, Europe, Japan, Korea and Taiwan to use the ARL Portfolio technologies. www.GetFugu.com Currently trading at .49 - ..01 on the week Support .48 Resistance .64 Technical’s overall Bearish. The recent Candle Stick analysis is: Neutral. Latest News: Form 8-K for GETFUGU, INC. http://biz.yahoo.com/e/091001/gfgu.ob8-k.html
Hythiam, Inc. (HYTM) is closing in on the answer to addiction of drugs and alcohol through its patented Prometa® therapy, a protocol that is designed to reset dysfunctional receptors in the brain to a presubstance abuse state while integrating medical, behavioral, and nutritional components. Hythiam has 21 patents issued or allowed and 95 applications pending. Q-1 Y 2008 revenues grew to US$11.3 million, with 60% increase in contributions from anti-addiction services. Hythiam recently signed an Agreement with Ford Motor Corp. to offer its services to Ford’s employees worldwide. Hythiam provides comprehensive behavioral health management services to health plans, employers, and criminal justice 22
and government agencies. In May 2008, Hythiam announced reimbursement agreement with CIGNA HealthCare for Prometa based treatment program. Its CATASYS™ Integrated Substance Dependence Solution is the only program of its kind dedicated exclusively to chemical dependence. The company also researches, develops, licenses and commercializes innovative and proprietary physiological, nutritional, and behavioral treatment programs. This market represents 180 million lives, and over 22 million Americans suffer from dependence on illicit drugs or alcohol, with only 18% seeking treatment. Direct medical costs in the US are over US$42B. Cocaine/stimulant addiction therapy is a multi-billion dollar market opportunity that was previously without effective treatment. www.hythiam.com Currently trading at .62 -.06 on the week. Support .54 Resistance .62 Technicals are overall Neutral. The recent Candle Stick analysis is: Bullish. Latest News: Hythiam Partners With Relapse Prevention Specialist, Dr. Alan Marlatt to Develop the OnTrak(TM) Psychosocial Program for Substance Dependence http://finance.yahoo.com/news/Hythiam-Partners-With-Relapse-pz-3583421337.html?x=0&.v=1
Neah Power Systems, Inc. (NPWZ): NEAH has developed and successfully tested a patented, siliconbased, micro fuel cell, which the Company claims will eventually replace batteries. It recently successfully completed a second round of tests for U.S. Navy Office of Naval Research, which has invested $3 million into the Company, which expects to offer its products to the entire range of the US and global military. The self-contained fuel cell also has a large market in police, and fire departments, and other first responders, including ambulance, paramedic and emergency room personnel, as well as power solutions for notebook PCs PDAs, mobile phones, camcorders, digital cameras and other portable electronic devices. NEAH’s fuel cell fits within a notebook PC’s internal battery cavity instead of outside the computer, and uses methanol, a renewable resource, which delivers continuous untethered power. NEAH recently received a cash infusion from Agile Opportunity Fund, and also acquired SolCool One, LLC, and a leader in the solar air conditioning industry. NEAH recently announced a joint venture with Hobie Cat boats to develop a fuel cell propelled craft, and also revealed another with EKO Vehicles of Bangalore, India, to develop a fuel cell charger for their line of motorcycles and scooters sold around the world. http://www.neahpower.com The iHubbers are also talking about Neah. Currently trading at 1.11/shr +.11 Support .96. Resistance 1.16 Technicals overall are Neutral. The recent Candle Stick analysis is: Bearish Latest News: Neah Power Successfully demonstrates its revolutionary methanol-powered fuel cell to the U.S. Navy http://finance.yahoo.com/news/Neah-Power-Participates-in-pz-2867276104.html?x=0&.v=1
TOMI Environmental Solutions, Inc. (TOMZ). “TOMI” is a Professional Air Remediation Company, which uses one of the most powerful disinfectants known to man: ozone. TOMI’s technology can be used against all forms of pathogens, including Swine Flu. TOMI demonstrated its prowess last week in a Baltimore hospital operating room, killing 99.999% of all viruses, bacteria, mold spores, and pathogens. Hospitals can be a significant hazard to sick people, and TOMI may come to be the only answer to a real problem in healthcare. TOMI remediated a high school in Brooklyn, NY after a flu outbreak, and outperformed any other known treatment method, killing 99.999 percent of all bacteria, viruses, and mold spores, using TOMI’s Ultraviolet Ozone Generators. The EPA reports that indoor air pollution is in the top five risks to public health. The American Medical Association (AMA) says that indoor levels of pollutants are between 25 and 200 times higher than outdoors. TOMI-ES has an exclusive distribution agreement with Advanced Disinfection Technologies, LLC to market their MRA Technology to over 300 Hospitals with its alliance partners. Magnetic Resolution Activation (MRA™) is a revolutionary breakthrough 23
disinfection process that effectively kill microorganisms, is not harmful to people or animals, is nonallergic, inexpensive and convenient to use. 2.4 million people each year require additional hospital care. Hospital-acquired infections (HAIs) account for more than 120,000 deaths annually in the US. ADTec's research and development company and TOMI’s complete air remediation for all forms of disinfection for many industries, solves this problem with the ability to kill 99.99% of harmful bacteria, viruses and spores in a hospital room in 15 minutes at a very economic price. Unlike harmful chemicals, the Reactive Oxygen Species fog (ROS) does no damage to any known material. www.tomiesinc.com Currently trading at 4.25 - .50 on the week Support 3.43 Resistance 4.51. The overall technical indicators are: Neutral. The recent Candle Stick analysis is: Neutral Latest News: TOMI Environmental Solutions and ROLYN Further Alliance in Infectious Disease Fight http://finance.yahoo.com/news/TOMI-Environmental-Solutions-pz-2207829713.html?x=0&.v=1
The Watch List “On the Watch List” contains potential investment opportunities for suitable small, mini and micro cap portfolios. ____________________________________________________________________________________
Red’s Rules to Play by… Do what they do on Wall St. and not what they say. Some folks like to buy stocks because they are upgraded, or sell stocks because they are downgraded; that’s the wrong approach. Learn how to evaluate stocks for yourself. It is not a difficult process; the steps are 1) check the volume for a buying or selling patterns, 2) recognize support and resistance levels and utilizing key charting patterns. I use www.stockta.com for my data. Knowledge is Power (and Money) Over my 30+ yrs playing the stock market in earnest, I have learned that there are winning stocks that most traders and investors completely ignore and abhor. And when played right, these overly unappreciated issues often lead to huge gains, but it is all about timing. There is no mystery here; you all know and/or have heard about “penny stocks” i.e. those that trade under US$5.00/shr on US markets (10’s of thousands of stocks trade on other world markets under US$5.00/shr and are not referred to in the same pejorative manner). This is just a label (designed to diminish their value and keep you away, IMO). The fact is that there are many, many studies made over the years that prove that these stocks outperform the overall market, and when there is a steady new Bull Market, the little stocks (small caps, micro and mini caps) lead the Charge. As a class, they are the most undiscovered and underappreciated sector of stocks and the sector where the biggest chance ends up big winners on a consistent basis. I call them Little Gems; they are indeed Wall Street's buried treasure for those who wish to go treasure hunting. Here, in the RedRoadmaster, I work to uncover solid, moneymaking companies whose shares are grossly undervalued and virtually undiscovered, and they sell for US$5 or less a share.
And do not forget to always include some small, mini and micro cap (pennies and juniors) sues in your sights; they can give you explosive percentage returns like no others. Savvy traders do not wait for the stock market to hit bottom, recover or get toppy; they do not double down or resort to tricky, desperation moves. They make simple moves on good data and bank some gains. Do not think get rich - think get rich slowly; it works. Even if you know absolutely nothing about how to start making a living in the stock market, and want to learn how to do it, the first step is to learn from someone who knows how to do it successfully. The stock market is about success, and the lifestyle that comes with it, but it must be done carefully, both by picking the issues and in the trading of them, because one wants to make money doing it independently and without stress. You can’t reverse your “bad plays”. Breathe through your nose, count to 10 and move ahead. Go forward, and only focus on what the opportunities are in front of you to win in the stock market game. You do not live in the scrapbook, and always take what the market gives. A journey of a thousand miles begins with the first step (Confucius); Download and read and study “Knowledge is Power,” my e-Book, its Free. Always remember that we look at the risk first and decide how to manage it before ever entering a position. Yes, losses will be incurred; it is part of this and any business, and not a bad thing if they are controlled. Again, think “get rich steady" and not "get rich quick". The Bull is charging again, and perhaps this the best investing scenario since the early 80's. It is happening now and savvy traders and investors are positioned and in the action. Have a great week, and stay tuned. All the best as the leaves turn… Red PS: Some of you know that I am the founder and non-Executive Chairman of Archer Entertainment Media Communications, Inc., www.archeremc.com, also that I am the Co-Founder of www.livetradingnews.com Check it out please, let me know your thoughts. Please reply to Redroadmaster@aol.com Disclaimer: The foregoing is commentary for informational purposes only. It is designed to help the reader learn the fine art of technical analysis. Links are provided to articles and stories referenced in this Report. Some statements and expressions are the points of view and/or opinions of Red Roadmaster™, aka Paul A. Ebeling, Jr. and the contributors. This information is not meant to be a solicitation or recommendation to buy, sell, or hold securities. I am not licensed or registered in the securities industry. The information presented herein has been obtained from readily available sources believed to be reliable, but its accuracy is not guaranteed. Estimates, assumptions and other forward-looking information are subject to the limits of forecasting. Actual future developments may differ materially due to many factors. I do not receive compensation in any manner from any of the companies that are discussed in this Report. Please feel free to print and/or send The Red Roadmaster’s Technical Report on the US Major Market Indices ™ to your friends and associates, no permission is necessary. ©2002/2009 Paul A. Ebeling, Jr. DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS WEBSITE OR IN OUR NEWSLETTERS. Red Roadmaster is not registered as a securities broker-dealer or an investment advisor either within the US Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. The information contained on our website or in any of our newsletters should be viewed as commercial advertisement and is not intended to be investment advice. Any information found on our website, or in any of our newsletters is not provided to any particular individual with a view
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