Pts Morning Call 11-20-09

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

Friday

11.20.2009

CURRENT MARKET SENTIMENT

The major indices suffered their first knock down punch by incurring a 93 points loss to finish at 10332(Dow) and 1095(S&P). Even with a stronger finish, both indices struggled to maintain the weekly close of 10270 (Dow)

and 1093 (S&P). These will be the key numbers to use as defense on the downside. On the upside, 10346 and 1099 might be the upper limit.

PRISM CALL

For the first time there was selling pressure in the first 15 minutes yesterday; thereafter, it was once again controlled selling. Today, the futures are indicating a down opening implying a follow through, a rare occasion in the past months. Despite being an options expiration day, the sentiment may be altering indicating that we have reached the peak. Sell the spikes. Show great self-discipline on the bottom picking.

ECONOMIC CALENDAR

NONE TODAY!

INDU & SPUZ TECHNICALS

INDICES INDU (DOW) SPUZ (S&P)

S2

S1

PIVOT

R1

R2

10169 10233

10338

10443

10572

1079

1197

1108

1115

1085

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 MTXX Matrixx Initiatives files FDA Response Letter on nasal products (3.80 -0.11)



%

5242.22

25.48

-0.48

DAX

5664.32

37.86

-0.66

HANG SENG

22455.84

187.32

-0.83

NIKKEI

9497.68

51.79

-0.54

CHINA

3308.346

12.266

-0.37

CRM Salesforce.com tgt raised to $70 at Kaufman following postive feedback from Dreamforce conference (62.58 )

COMMODITY PRICES

German Producer Prices flat in October vs September – DJ

MARKET

PRICE

FTSE




DOW STOCKS TO WATCH STRONG

WEAK

WMT

HPQ

MRK

UTX

KO

CVX

BAC

COMMODITY

US Treasury to sell TARP warrants in public dutch auctions – DJ

PRICE




76.35

OIL

GOLD



1.11

1134.7

7.20

AXP

UPGRADES & DOWNGRADES STOCKS UPGRADED COMPANY

BROKERAGE FIRM

RATINGS CHANGE

Cyberonics (CYBX)

Piper Jaffray

Neutral » Overweight

$20

Lexington (LXP)

Stifel Nicolaus

Hold » Buy

$5.50

Suntech Power (STP)

Soleil

Sell » Hold

$13.50

Liberty Media (LINTA)

Citigroup

Hold » Buy

Martin Marietta (MLM)

UBS

Neutral » Buy

Vulcan Materials (VMC)

UBS

Neutral » Buy

Dillard's (DDS)

Deutsche Bank

MRO Marathon Oil tgt raised to $45 at Collins Stewart following analyst meeting (33.33 )

PRICE

TARGET

COV Covidien announces that FDA Extends Review of NDA for Exalgo (45.13 ) BTU Goldman raises their tgts on select Coal stocks; removes BTU from their Conviction Buy listReuters The firm raises Patriot Coal Corp (PCX) target to $14 from $12 and reits their Sell. The firm raises their Massey Energy (MEE) target to $48 from $38, Alpha Natural Resources (ANR) to $56 from $50, CONSOL Energy (CNX) to $58 from $54, Arch Coal (ACI) to $27 from $24. PG Procter & Gamble expects organic sales to improve sequentially - DJ (62.15 )

$13.50 » $28

Hold » Buy

STOCKS DOWNGRADED COMPANY

BROKERAGE FIRM

RATINGS CHANGE

PRICE

CSX Corp (CSX)

Stifel Nicolaus

Buy >> Hold

49.14

Research in Motion (RIMM)

FTN Equity

Buy >> Neutral

58.84

Dominion (D)

Citigroup

Hold >> Sell

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TARGET

LFL Lan Airlines S.A. initiated with a Overweight at JP Morgan (14.64 ) DB Deutsche Bank CEO says 2010 to be another challenging year for banks - DJ (75.41 ) IBN ICICI Bank lowers yld in bond sale, according to source Reuters.com (37.06 )

EARNINGS

FL Foot Locker prelim $0.10 vs $0.13 First Call consensus; revs $1.21 bln vs $1.19 bln First Call consensus FL Foot Locker misses by $0.03, beats on revs (10.59 -0.51) ARCL Archipelago Learning prices 6.25 mln IPO at $16.50 per share, within the expected $15-17 range SVN 7 Days Group prices 10.1 mln share IPO at $11 per share, the high end of the expected $9-11 range CLD Cloud Peak Energy prices 30.6 mln share IPO at $15 per share, below the expected $16-18 range DHI DR Horton misses by $0.43, misses on revs (12.25 ) SJM J.M. Smucker beats by $0.14, beats on revs; guides FY10 EPS above consensus, revs in-line (53.48 ) ANN AnnTaylor beats by $0.13, misses on revs (13.81 ) LG Laclede Gas Company increases quarterly dividend to 39.5 cents per share from 38.5 cents per share (31.60 -0.84) MRK Merck receives CHMP positive opinion for new fertility treatment, ELONVA (35.33 ) DNDN Dendreon receives FDA acknowledgement of complete response (28.05 ) BSX Boston Scientific Announces FDA Clearance and CE Mark for WallFlex Fully Covered Esophageal Stent

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TECHNICAL ANALYSIS

Symbol

S7

S6

S5

S4

S3

S2

S1

PIVOT

R1

R2

R3

R4

R5

R6

R7

1089.68

1096.58

1103.48

1105.60

1107.73

1114.62

1121.51

1125.77

1132.66

Sectors SPX

1060.50 1067.39 1071.65 1078.54 1085.43 1087.56

INDU

9999.52 10064.16 10104.10 10168.74 10233.38 10253.35 10273.23 10337.96 10402.69 10422.57 10442.54 10507.18 10571.82 10611.76 10676.40

NDX

1718.65 1729.31 1735.89 1746.54 1757.20 1760.49

XBD

109.63 41.89 3774.95 657.74 179.96 471.29 742.23 379.73 292.23 387.79

BKX TRAN OIX OSX XNG CYC UTY DRG RLX

110.99 42.29 3812.48 664.74 182.89 477.44 751.10 381.92 293.96 390.32

111.84 42.54 3835.67 669.06 184.70 481.24 756.58 383.28 295.03 391.88

113.20 42.95 3873.20 676.07 187.63 487.39 765.45 385.47 296.76 394.41

114.56 43.35 3910.73 683.07 190.56 493.54 774.32 387.66 298.49 396.94

1812.98

1819.56

1830.21

114.99 115.40 116.77 118.14 118.56 118.98 120.34 121.70 43.48 43.60 44.01 44.41 44.54 44.66 45.07 45.47 3922.32 3933.87 3971.45 4009.03 4020.57 4032.17 4069.70 4107.23 685.23 687.39 694.40 701.41 703.56 705.72 712.73 719.73 191.47 192.37 195.30 198.23 199.14 200.04 202.97 205.90 495.44 497.34 503.49 509.65 511.54 513.44 519.59 525.74 777.06 779.79 788.67 797.55 800.28 803.02 811.89 820.76 388.34 389.01 391.21 393.41 394.08 394.76 396.95 399.14 299.02 299.55 301.29 303.02 303.55 304.09 305.82 307.55 397.72 398.50 401.03 403.57 404.34 405.12 407.65 410.18

1763.77

1774.43

1785.10

1788.38

1791.67

1802.32

122.55 45.72 4130.42 724.05 207.71 529.54 826.24 400.50 308.62 411.74

123.91 46.13 4167.95 731.06 210.64 535.69 835.11 402.69 310.35 414.27

109.00 102.93 43.33 53.25 58.10 118.82 56.67 19.08 75.03 8.65 36.26 39.27 23.97

113.61 105.47 44.88 57.08 61.22 127.92 59.42 20.92 82.99 9.24 38.17 41.68 25.50

114.44 105.93 45.16 57.77 61.78 129.57 59.91 21.25 84.43 9.35 38.51 42.12 25.77

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

105.73 106.56 107.08 107.91 108.74 101.13 101.59 101.87 102.33 102.79 42.24 42.52 42.69 42.97 43.25 50.53 51.22 51.65 52.34 53.03 55.90 56.46 56.81 57.37 57.93 112.37 114.01 115.02 116.67 118.31 54.73 55.23 55.53 56.03 56.52 17.77 18.10 18.31 18.64 18.97 69.39 70.83 71.71 73.15 74.59 8.23 8.34 8.40 8.51 8.61 34.91 35.25 35.47 35.81 36.15 37.56 38.00 38.26 38.70 39.14 22.89 23.17 23.34 23.61 23.89

109.25 103.07 43.42 53.46 58.27 119.32 56.83 19.18 75.47 8.68 36.37 39.40 24.06

110.09 103.53 43.70 54.15 58.84 120.97 57.32 19.51 76.91 8.79 36.71 39.84 24.33

110.92 103.99 43.98 54.85 59.40 122.61 57.82 19.84 78.35 8.89 37.05 40.28 24.61

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111.17 104.13 44.06 55.06 59.57 123.12 57.97 19.95 78.79 8.93 37.16 40.41 24.69

111.43 104.27 44.15 55.27 59.75 123.62 58.12 20.05 79.23 8.96 37.27 40.54 24.78

112.26 104.73 44.43 55.96 60.31 125.27 58.62 20.38 80.67 9.07 37.61 40.98 25.05

113.09 105.19 44.71 56.65 60.87 126.91 59.11 20.71 82.11 9.17 37.95 41.42 25.33