Prism Morning Call 11-17-2009

THE DAILY BRIEF 2385 Executive Center Drive, Suite 400 • Boca Raton, Florida 33431 Phone: (561) 922-5266 • Fax: (561) 623-6235 www.prismtradingschool.com

Tuesday

11.17.2009

CURRENT MARKET SENTIMENT

The market dismissed the economic data and Meredith Whitney’s long term negative outlook on the banks to power well above the resistance to move up to 10407 (Dow) and 1109 (S&P). The market is fixated in finishing far much higher than the present number for

the year. However, for this week, a retest of 1004 (S&P) might be the first condition prior to the move up, thus the pivot for the day is the first defense. On the other hand, the euphoric atmosphere may lead to the first resistance.

PRISM CALL

With all major European markets down and slightly negative futures, indicates a flat to negative opening and possibly a range bound day. The Chairman’s word on market alignment with the fundamentals might put a temporary damper on the momentum today. Shorting the up leg may be a better play than long. Caution is required due to lack of selling pressure.

ECONOMIC CALENDAR

INDU & SPUZ TECHNICALS

TIME

INDICATOR

RANGE

EXPECTATION

PRIOR

ACTUAL

8:30 AM

Producer Price Index (MoM)

0.0% to 1.3%

0.50%

-0.60%

0.3%

8:30 AM

PPI Ex Food & Energy (MoM)

-0.1% to 0.3%

0.1%

-0.1%

-0.6%

8:30 AM

Producer Price Index (YoY)

-2.2% to 1.1%

-1.8%

-4.8%

-1.9%

8:30 AM

PPI Ex Food & Energy (YoY)

-0.4% to 1.6%

1.4%

1.8%

0.7%

9:15 AM

Industrial Production

-0.3% to 0.9%

0.4%

0.7%

9:15 AM

Capacity Utilization

70.2% to 71.5%

70.8%

70.5%

1:00 PM

NAHB Housing Market Index

16 to 20

19

18

INDICES INDU (DOW) SPUZ (S&P)

S2

S1

PIVOT

R1

R2

10203 10266

10370

10473

10536

1086

1106

1118

1120

1094

Page |1 RISK DISCLAIMER: There is a very high degree of risk involved in trading equities. Trading is not for every investor and only risk capital should be used. Past results are not indicative of future returns. Prism Trading School, LLC (“Prism”) and all individuals affiliated with Prism assume no responsibilities for your trading and investment results. The indicators, strategies, articles and all other features are for educational purposes only and should not be construed as investment advice. Any person who chooses to use this information as a basis for their trading assumes all the liability and risk for themselves and hereby and absolutely agrees to indemnify and hold harmless Prism, its principals, agents and employees. All of the material contained herein is believed to be correct, however, Prism will not be held responsible for accidental oversights, typos or incorrect information from sources that generate fundamental and technical information. Prism does not warrant the completeness or accuracy of such information, and does not warrant any results from the use of the information. Your use of Prism materials is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the information. You must assess the risk of any trade and make your own independent decisions regarding any securities mentioned herein. Prism affiliates may have a position or effect transactions in the securities described herein (or options thereon) and/or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies.

FOREIGN MARKETS

NEWS



%

5351.87

30.80

-0.57

DAX

5783.75

21.07

-0.36

HANG SENG

22914.15

29.83

-0.13

NIKKEI

9729.93

61.25

-0.63

CHINA

3282.889

MARKET

PRICE

FTSE




7.841

WEAK

IBM

MMM

UTX

DD

BA

JPM

AIG NY Fed failed to negotiate AIG concessions - Reuters (35.75 )

COMMODITY PRICES COMMODITY

PRICE




78.45

OIL

GOLD

JNJ

CERS Cerus receives FDA Blood Products Advisory Committee guidance for proposed INTERCEPT Blood System Ph. III trial design (2.56 )

0.24

DOW STOCKS TO WATCH STRONG

GTY Getty Petroleum Marketing announces restructuring



0.45

1131.4

7.80

MRK

UPGRADES & DOWNGRADES STOCKS UPGRADED COMPANY

BROKERAGE FIRM

RATINGS CHANGE

PRICE

Alkermes (ALKS)

Leerink Swann

Outperform

8.18

Brinker (EAT)

Raymond James

Outperform >> Strong Buy

Exxon Mobil (XOM)

Barclays Capital

Equal Weight » Overweight

$90 » $92

Palm (PALM)

Kaufman Bros

Hold » Buy

$16

Devon Energy (DVN)

Wells Fargo

Market Perform » Outperform

Hess (HES)

UBS

Neutral » Buy

National Fuel Gas (NFG)

UBS

Neutral » Buy

TARGET

DVN Devon Energy tgt raised to $85 at FBR Capital as restructuring makes significant strategic and economic sense (70.99 ) IBKC IberiaBank tgt raised to $70 at Wunderlich following Friday's FDIC assisted deal (52.43 ) AGU Agrium signs consent agreement with FTC staff on CF acquisition (53.78 )

13.80

GLD IMF sells 2 metric tons of gold to Mauritius - DJ (111.63 ) IMF chief keeps up pressure on China to let yuan rise – DJ Euro-zone posts surprise trade surplus in September – DJ

STOCKS DOWNGRADED BROKERAGE FIRM

RATINGS CHANGE

PRICE

TIB Financial (TIBB)

Raymond James

Market Perform >> Underperform

1.05

Sunpower (SPWRA)

FBR Capital

Outperform » Mkt Perform

BT Group PLC (BT)

JP Morgan

Overweight » Neutral

COMPANY

BCS Lehman sues Barclays over windfall profits - Reuters (21.82 )

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TARGET

$38 » $30

ONCY Oncolytics Biotech Collaborators Present "Positive Phase I/II Trial Results" in Advanced Solid Cancers with a Focus on the Head and Neck

EARNINGS

JEC Jacobs misses by $0.05, misses on revs; guides FY10 EPS below consensus (45.49 ) VIT VanceInfo Tech beats by $0.01, beats on revs; guides FY09 EPS above consensus, revs above consensus (19.32 ) HD Home Depot beats by $0.05, reports revs in-line; guides FY10 EPS above consensus (27.65 ) COV Covidien beats by $0.02, beats on revs; issues upside FY10 revenue guidance (44.09 ) CSIQ Canadian Solar beats by $0.15, beats on revs (19.70 ) CHBT China-Biotics reports Q2 EPS of $0.31 excluding items vs $0.25 two analyst est, revs rose 49.2% YoY to $17.1 mln vs $14.75 mln consensus (13.89 ) NUS Nu Skin sees FY10 $1.60-1.70 vs $1.62 First Call consensus; sees revs $1.37-1.40 bln vs $1.39 bln First Call consensus DDS Dillard's reports Q3 (Oct) results, revs in-line (13.33 ) : Reports Q3 (Oct) loss of $0.03 per share, excludes tax benefit and may not be comparable to the First Call consensus of ($0.51); revenues fell 9.9% year/year to $1.36 bln vs the $1.36 bln consensus. EMN Eastman Chem guides for 2009 EPS of $3.50, ex items, Firt Call consensus $3.41 (59.87 ) SKS Saks beats by $0.12, beats on revs (6.41 ) TGT Target prelim $0.58 vs $0.50 First Call consensus; revs $14.79 bln vs $15.25 bln First Call consensus TGT Target beats by $0.08, misses on revs (50.29 ) TGT Target remains cautious about fourth quarter performance and is planning conservatively in both business segments. STP Suntech Power ests rasied at Jefferies ahead of earnings (15.37 )

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TECHNICAL ANALYSIS

Symbol

S7

S6

S5

S4

S3

S2

S1

PIVOT

R1

R2

R3

R4

R5

R6

R7

1098.22

1105.71

1113.19

1115.49

1117.79

1125.27

1132.74

1137.35

1144.83

Sectors SPX

1066.59 1074.06 1078.67 1086.15 1093.62 1095.93

INDU

10035.97 10099.68 10139.05 10202.76 10266.47 10286.16 10305.75 10369.55 10433.35 10452.95 10472.63 10536.34 10600.05 10639.42 10703.13

NDX

1763.91 1771.78 1776.65 1784.53 1792.40 1794.84

XBD

114.31 41.35 3824.60 668.55 186.94 488.56 751.39 386.60 289.66 396.85

BKX TRAN OIX OSX XNG CYC UTY DRG RLX

115.21 41.80 3862.39 675.20 189.87 494.01 760.50 388.46 291.86 399.15

115.77 42.08 3885.74 679.31 191.68 497.38 766.12 389.61 293.23 400.57

116.67 42.52 3923.53 685.96 194.61 502.84 775.22 391.47 295.43 402.88

117.57 42.97 3961.32 692.61 197.54 508.29 784.33 393.33 297.63 405.18

1797.26

1805.15

1813.03

1815.46

1817.89

1825.77

1833.64

1838.51

1846.39

117.85 118.13 119.03 119.93 120.21 120.49 121.39 122.29 122.85 123.75 43.11 43.25 43.69 44.14 44.28 44.42 44.86 45.31 45.59 46.03 3973.00 3984.62 4022.46 4060.30 4071.93 4083.60 4121.39 4159.18 4182.53 4220.32 694.67 696.71 703.37 710.03 712.08 714.13 720.78 727.43 731.54 738.19 198.44 199.34 202.28 205.21 206.11 207.02 209.95 212.88 214.69 217.62 509.98 511.65 517.12 522.58 524.26 525.94 531.40 536.85 540.22 545.68 787.14 789.94 799.05 808.17 810.97 813.78 822.88 831.99 837.61 846.71 393.91 394.48 396.34 398.20 398.78 399.35 401.21 403.07 404.22 406.08 298.32 298.99 301.20 303.41 304.09 304.77 306.97 309.17 310.54 312.74 405.89 406.60 408.91 411.21 411.92 412.63 414.94 417.24 418.66 420.97

Tradeables SPY DIA QQQQ QLD IWM OIH XLE FAZ FAS SRS SDS USO SKF

108.33 108.86 109.18 109.70 110.23 101.61 102.08 102.37 102.84 103.30 43.35 43.55 43.68 43.88 44.08 53.36 53.87 54.18 54.68 55.19 56.91 57.50 57.87 58.47 59.06 117.75 119.26 120.19 121.70 123.21 55.98 56.47 56.78 57.28 57.77 17.13 17.49 17.72 18.08 18.44 71.77 73.17 74.04 75.44 76.84 7.64 7.82 7.93 8.11 8.28 34.06 34.41 34.63 34.99 35.34 37.43 37.93 38.24 38.74 39.24 22.38 22.68 22.87 23.16 23.46

110.39 103.45 44.15 55.34 59.25 123.68 57.93 18.56 77.28 8.34 35.45 39.40 23.55

110.55 103.59 44.21 55.50 59.43 124.14 58.08 18.67 77.71 8.39 35.56 39.55 23.64

111.07 104.06 44.41 56.00 60.03 125.65 58.58 19.03 79.11 8.57 35.92 40.05 23.94

111.60 104.53 44.61 56.51 60.62 127.16 59.07 19.39 80.51 8.75 36.27 40.55 24.24

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111.76 104.67 44.68 56.66 60.81 127.63 59.23 19.51 80.95 8.81 36.38 40.71 24.33

111.92 104.82 44.74 56.82 60.99 128.09 59.38 19.62 81.38 8.86 36.49 40.86 24.43

112.44 105.29 44.94 57.32 61.59 129.60 59.88 19.98 82.78 9.04 36.85 41.36 24.72

112.97 105.75 45.14 57.83 62.18 131.11 60.37 20.34 84.18 9.22 37.20 41.86 25.02

113.29 106.04 45.27 58.14 62.55 132.04 60.68 20.57 85.05 9.33 37.42 42.17 25.21

113.81 106.51 45.47 58.64 63.15 133.55 61.18 20.93 86.45 9.51 37.78 42.67 25.50