Pts Morning Call 12-02-09

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

Wednesday

12.02.2009

CURRENT MARKET SENTIMENT

10500 was a satisfying reward intraday which lead the Dow to finish at 10472, a new closing high. The S&P followed to finish at 1109. Despite possible resistance at this level, the

market is likely to pause awaiting the Beige Book. The pivot will be the constraining factor on the downside, thus raising the possibility of a tight market prior to the report.

PRISM CALL

A Flat future after 128 points gain indicates investors are reflecting on the next move. With limited economic numbers and the release of the Beige Book at 2.00 PM, there are no catalysts for the upside. On the other hand, there are no sellers for downside drift. The best approach is to short up on a possible range bound day.

ECONOMIC CALENDAR

INDU & SPUZ TECHNICALS

TIME

INDICATOR

RANGE

EXPECTATION

PRIOR

ACTUAL

8:15 am

ADP Employment Change US Crude Oil Inventories US Gasoline Inventories US Distillate Inventory US Refinery Utilization Fed’s Beige Book

-190K to -100K

-150K

-203K

-169K

-1900K to 3000K -50K to 2000K -1700K to 2000K -0.50% to 0.60%

-450K

1019K

750K

1003K

-350K

-529K

0.35%

0.81%

10:30 am 10:30 am 10:30 am 10:30 am 2:00p m

INDICES INDU (DOW) SPUZ (S&P)

S2

S1

PIVOT

R1

R2

10281 10341

10439

10536

10597

1093

1107

1115

1120

1098

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 MRK Merck: FDA approves ZEGERID OTC for over-the-counter treatment of frequent heartburn (36.88 +0.67)



%

5300.61

11.56

-0.22

DAX

5768.0

8.61

-0.15

HANG SENG

22289.57

176.42

0.8

NIKKEI

9608.94

36.74

0.38

CHINA

3269.752

34.389

1.06

SPLS Staples: FBR Capital fades the strength following the Q3 report (24.44 )

COMMODITY PRICES

WMT Wal-Mart announces price cuts on 2009 video games and Gift Card with Wii console purchase (54.75 )

MARKET

PRICE

FTSE




DOW STOCKS TO WATCH STRONG

WEAK

IBM

HPQ

BA

JPM

PG

MCD

VZ

COMMODITY

AMZN Amazon.com target raised to $160 at FBR Capital as checks indicate co continues to take share from traditional retail (138.50 )

PRICE

OIL

77.88

GOLD

1211.3






0.49

BCS Barclays receives surprise 1 bln pounds in BGI sale - FT (19.67 ) SXE Stanley awarded a five-year, firm-fixed-price contract valued at up to $55 million to provide financial management support services to the U.S. Army Central Command (27.18 )

11.10

AXP

UPGRADES & DOWNGRADES STOCKS UPGRADED COMPANY

BROKERAGE FIRM

RATINGS CHANGE

MDC Holdings (MDC)

Credit Suisse

Underperform » Neutral

Sysco (SYY)

BB&T Capital Mkts

Hold » Buy

SunTrust Banks (STI)

Credit Suisse

Neutral » Outperform

$23 » $29

BB&T Corp (BBT)

Credit Suisse

Underperform » Neutral

$28 » $31

KB Home (KBH)

Credit Suisse

Neutral » Outperform

$17 » $18

Dreamworks Animation (DWA)

Janney Mntgmy Scott

Neutral » Buy

HDFC Bank (HDB)

Deutsche Bank

Hold » Buy

Assured Guaranty (AGO)

Keefe Bruyette

Mkt Perform » Outperform

PRICE

TARGET $26 » $29

MON Monsanto confident in operational path to 2012 financial goals, reflecting focus on delivering step-change new technologies that emphasize mix opportunity (82.51 ) ACN Accenture target raised to $55 at Credit Suisse following tech conf (41.50 ) NOC Northrop Grumman: Credit Suisse notes NOC's decision to abandon the tanker bid vs BA is merely a posturing move in its view. CYTR CytRx announces That FDA Lifts Clinical Hold of Arimoclomol in ALS

$28

PDLI PDL BioPharma announces special $1.67 dividend payable on Dec 15

STOCKS DOWNGRADED COMPANY

BROKERAGE FIRM

RATINGS CHANGE

Pepco Hldgs (POM)

Credit Suisse

Outperform » Neutral

Mechel Steel (MTL)

Credit Suisse

Neutral » Underperform

PRICE

Page |2 www.prismtradingschool.com

TARGET $16

KERX Keryx Biopharma Receives FDA Fast Track Designation for KRX0401 (Perifosine) for the Treatment of Relapsed/Refractory Multiple Myeloma

EARNINGS GAME Shanda Games prelim $0.20 vs $0.21 First Call consensus; revs $186.3 mln vs $185.50 mln First Call consensus GAME Shanda Games misses by $0.01, reports revs in-line (10.61 +0.37) PDLI PDL BioPharma sees Q4 revs guidance below consensus (6.70 +0.20) AYI Acuity Brands prices $350.0 mln senior unsecured notes due 2019 WFC Wells Fargo to close 122 Calif. branches: Report - Reuters (27.99 ) JOSB Jos. A. Bank beats by $0.08, reports revs in-line (42.80 ) FCS Fairchild Semi: FBR Capital notes co yesterday guided Q4 to high end of range; raising ests, tgt to $16 (8.79 ) WAG Walgreens reports November same store sales of +3.7% (39.37 ) GIII G-III Apparel beats by $0.23, beats on revs; raises FY10 EPS and revs guidance (17.50 ) TECHNICAL ANALYSIS Symbol

S7

S6

S5

S4

S3

S2

S1

PIVOT

R1

R2

R3

R4

R5

R6

R7

1101.55

1106.68

1111.80

1113.37

1114.95

1120.07

1125.18

1128.34

1133.46

Sectors SPX

1079.90 1085.01 1088.17 1093.29 1098.40 1099.98

INDU

10123.09 10183.38 10220.63 10280.93 10341.22 10359.85 10378.39 10438.77 10499.14 10517.69 10536.31 10596.61 10656.90 10694.15 10754.45

NDX

1758.42 1764.39 1768.08 1774.05 1780.02 1781.87

1783.70

XBD

111.22 42.94 3836.23 660.90 185.49 485.92 749.45 389.46 298.31 388.55

BKX TRAN OIX OSX XNG CYC UTY DRG RLX

1797.50

1799.34

1805.31

1811.28

1814.97

1820.94

113.61 44.01 3937.40 683.64 190.96 501.41 780.44 399.26 306.34 401.86

113.81 44.10 3946.03 685.59 191.43 502.73 783.08 400.10 307.03 402.99

114.01 114.68 115.34 115.54 44.19 44.48 44.78 44.87 3954.63 3982.63 4010.63 4019.23 687.52 693.82 700.11 702.05 191.90 193.41 194.92 195.39 504.05 508.34 512.62 513.94 785.72 794.29 802.87 805.50 400.93 403.64 406.36 407.19 307.71 309.93 312.16 312.84 404.12 407.81 411.49 412.62

115.75 44.96 4027.87 703.99 195.86 515.26 808.15 408.02 313.52 413.76

116.41 45.25 4055.83 710.28 197.37 519.55 816.71 410.73 315.74 417.44

117.07 45.55 4083.80 716.56 198.88 523.83 825.28 413.44 317.96 421.12

117.48 45.73 4101.07 720.45 199.82 526.47 830.57 415.11 319.33 423.39

118.14 46.02 4129.03 726.74 201.33 530.76 839.13 417.82 321.55 427.07

109.37 109.73 109.94 110.30 110.66 102.99 103.32 103.52 103.85 104.18 43.22 43.38 43.48 43.64 43.80 52.90 53.30 53.55 53.95 54.35 57.35 57.65 57.83 58.12 58.42 117.14 117.69 118.04 118.60 119.15 56.51 56.73 56.87 57.10 57.32 18.00 18.27 18.43 18.70 18.97 70.70 71.73 72.36 73.38 74.41 7.83 7.97 8.05 8.18 8.32 34.50 34.73 34.87 35.10 35.33 38.77 38.96 39.07 39.26 39.45 64.17 54.98 49.31 40.13 30.94

110.77 104.28 43.85 54.47 58.51 119.33 57.39 19.05 74.72 8.36 35.40 39.51 28.11

110.87 104.38 43.90 54.60 58.60 119.50 57.46 19.13 75.04 8.40 35.47 39.56 25.28

111.80 105.24 44.32 55.65 59.37 120.96 58.05 19.83 77.72 8.75 36.07 40.05 1.23

112.16 105.57 44.48 56.05 59.66 121.52 58.28 20.10 78.74 8.88 36.30 40.24 -7.95

112.52 105.90 44.64 56.45 59.96 122.07 58.50 20.37 79.77 9.02 36.53 40.43 -17.14

112.73 106.10 44.74 56.70 60.14 122.42 58.64 20.53 80.40 9.10 36.67 40.54 -22.81

113.09 106.43 44.90 57.10 60.43 122.98 58.87 20.80 81.42 9.23 36.90 40.73 -31.99

111.88 43.24 3864.20 667.18 187.00 490.20 758.02 392.17 300.53 392.23

112.29 43.42 3881.47 671.07 187.94 492.84 763.31 393.84 301.90 394.50

112.95 43.71 3909.43 677.36 189.45 497.13 771.87 396.55 304.12 398.18

1789.68

1795.66

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

111.23 104.71 44.06 55.00 58.89 120.06 57.69 19.40 76.06 8.53 35.70 39.75 16.09

111.59 105.04 44.22 55.40 59.19 120.62 57.91 19.67 77.09 8.67 35.93 39.94 6.89

111.70 105.14 44.27 55.52 59.28 120.79 57.98 19.75 77.40 8.71 36.00 40.00 4.07

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