Pts Morning Call 12-09-09

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

12.09.2009

CURRENT MARKET SENTIMENT

Sovereign Debt Default shook the market down and the indices finished at 10286 (Dow) and 1092 (S&P), above the kiss of death. It is back to business as usual, the market may be

range bound. The downside is constrained by the kiss of death and the upside by limited economic numbers and events.

PRISM CALL

Market is trading up and will probably remain up all day. Fund managers need to protect there up year and we closed at the breakeven point for the month. Look for strength in oil and a possible bounce in gold. Keep in mind that volume is lower than average and profits need to be taken when available.

ECONOMIC CALENDAR

INDU & SPUZ TECHNICALS

TIME

INDICATOR

RANGE

EXPECTATION

PRIOR

10:00 am

Wholesale Inventories

-1.0% to 0.3%

-0.5%

-0.9%

10:30 am

US Crude Oil Inventories

-900K to 2700K

750K

2091K

10:30 am

US Gasoline Inventories

0K to 2800K

1675K

3996K

10:30 am

US Distillate Inventory

-1700K to 1000K

-775K

-1170K

10:30 am

US Refinery Utilization

0.00% to 0.50%

0.25%

-0.59%

ACTUAL

INDICES INDU (DOW) SPUZ (S&P)

S2

S1

PIVOT

R1

R2

10171 10223

10307

10391

10441

1080

10307

11103

1109

1086

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

PRICE




FTSE

5223.96

0.83

DAX

5676.65

11.93

-0.21

HANG SENG

21741.76

318.76

-1.44

NIKKEI

10004.72

135.75

-1.34

CHINA

3239.568

57.096

-1.73



0.02

WEAK

JNJ

AA

KO

DD

PG

MCD

WMT

SWY Safeway added to ShortTerm Sell List at UBS (20.91 ) Adviser to G20 Presidency warns some of Europe's biggest banks have yet to "come clean" - Daily Telegraph

COMMODITY PRICES

DOW STOCKS TO WATCH STRONG

Former BOE official Buiter says Greece may be first EU default Bloomberg.com

%

MARKET

COMMODITY

PRICE




OIL

73.52

0.90

GOLD

1143.6

0.20



US Senator Shelby says deal on financial regulation rewrite unlikely this year - Reuters.com Dubai debt confusion, Nakheel dent confidence - Reuters.com HBC HSBC Holdings, 3 other UK banks agree to reschedule Dubai debt, report says - DJ (57.12 )

TRV

UPGRADES & DOWNGRADES STOCKS UPGRADED COMPANY

BROKERAGE FIRM

RATINGS CHANGE

PRICE

TARGET

Sprint Nextel (S)

Citigroup

Buy

3.91

5.50

Kroger (KR)

UBS

Buy >> Neutral

20.13

22

3M (MMM)

Citigroup

Hold >> Buy

77.11

CA (CA)

Deutsche Bank

Hold >> Buy

21.91

22 > 28

STOCKS DOWNGRADED COMPANY

BROKERAGE FIRM

RATINGS CHANGE

PRICE

TARGET

Kimberly-Clark (KMB)

Barclays

Equal-weight – Underweight

64.91

68 >> 66

European market summary: FTSE flat ahead of UK prebudget report: FTSE +0.18%, CAC +0.19%, DAX +0.19% TXN Texas Instruments: Color on mid-qtr update (26.33 ) Deutsche Bank notes yesterday after the close TXN provided a solid 4Q mid-qtr update increasing the mid-pt of its rev guidance and raising the highend of its EPS guidance (implying margin upside). While firm views this revision as a positive (especially on margins), the magnitude generally met expectations and therefore expect the share price reaction to be muted. Two major publishers to hold back e-books – WSJ

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NEWS & EARNINGS

MOV Movado Group misses by $0.53, misses on revs, lowers FY10 EPS guidance (10.85 ) Greek govt assurances leave markets unimpressed – DJ Obama to extend bailout fund - Reuters.com China to tighten policy to curb property speculation – DJ ECONX MBA Mortgage Applications +8.5% vs +2.1% Prior Asia markets close; Nikkei falls on revised GDP data, strong yen: Nikkei -1.34%, Shanghai Composite 1.73%, Hang Seng -1.44%, Sensex -0.59% Japan GDP revised heavily downward - Financial Times Senators strike health deal – WSJ TECHNICAL ANALYSIS Symbol

S7

S6

S5

S4

S3

S2

S1

PIVOT

R1

R2

R3

R4

R5

R6

R7

1087.32

1089.01

1094.53

1100.05

1101.75

1103.45

1108.96

1114.47

1117.88

1123.39

Sectors SPX

1065.67 1071.18 1074.59 1080.10 1085.61

INDU

10035.53 10087.41 10119.46 10171.34 10223.22 10239.25 10255.21 10307.15 10359.10 10375.06 10391.08 10442.96 10494.84 10526.89 10578.77

NDX

1722.85 1732.47 1738.41 1748.03 1757.65

1760.62

XBD

109.08 42.14 3947.39 637.85 170.79 473.37 768.40 402.05 300.65 390.47

111.73 111.94 112.62 113.29 113.50 113.71 114.39 115.06 115.48 116.16 43.13 43.20 43.46 43.71 43.79 43.86 44.12 44.37 44.52 44.78 4027.27 4033.53 4053.89 4074.26 4080.52 4086.80 4107.14 4127.48 4140.05 4160.39 660.19 661.94 667.63 673.33 675.08 676.84 682.52 688.21 691.73 697.41 179.34 180.01 182.19 184.37 185.04 185.71 187.89 190.07 191.41 193.59 489.51 490.78 494.89 499.01 500.27 501.54 505.65 509.76 512.30 516.41 787.51 789.01 793.88 798.75 800.25 801.75 806.62 811.49 814.49 819.36 409.51 410.09 411.99 413.89 414.48 415.06 416.96 418.86 420.03 421.93 305.60 305.99 307.25 308.51 308.90 309.29 310.55 311.81 312.59 313.85 400.66 401.45 404.05 406.65 407.45 408.25 410.84 413.43 415.04 417.63

BKX TRAN OIX OSX XNG CYC UTY DRG RLX

109.75 42.39 3967.73 643.54 172.97 477.48 773.27 403.95 301.91 393.06

110.17 42.54 3980.30 647.06 174.31 480.02 776.27 405.12 302.69 394.67

110.85 42.80 4000.64 652.74 176.49 484.13 781.14 407.02 303.95 397.26

111.52 43.05 4020.98 658.43 178.67 488.24 786.01 408.92 305.21 399.85

1763.58

1773.21

1782.84

1785.80

1788.77

1798.39

1808.01

1813.95

1823.57

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

107.75 108.12 108.36 108.73 109.10 99.33 99.98 100.37 101.02 101.67 42.39 42.63 42.78 43.03 43.27 50.38 51.06 51.48 52.16 52.84 57.78 58.20 58.46 58.87 59.29 105.59 106.77 107.50 108.68 109.86 52.90 53.29 53.53 53.92 54.31 19.59 19.80 19.92 20.12 20.33 67.03 67.75 68.20 68.92 69.64 7.55 7.68 7.76 7.89 8.02 35.37 35.62 35.77 36.01 36.26 36.02 36.20 36.31 36.48 36.66 24.34 24.52 24.63 24.81 24.99

109.22 101.87 43.35 53.05 59.42 110.22 54.43 20.39 69.87 8.06 36.33 36.71 25.05

109.34 102.06 43.42 53.26 59.55 110.58 54.55 20.45 70.09 8.10 36.41 36.77 25.10

109.71 102.71 43.67 53.94 59.96 111.77 54.94 20.65 70.81 8.23 36.65 36.94 25.28

110.08 103.36 43.91 54.62 60.38 112.95 55.33 20.86 71.53 8.36 36.90 37.12 25.46

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110.20 103.56 43.99 54.83 60.51 113.31 55.45 20.92 71.76 8.40 36.97 37.17 25.52

110.32 103.75 44.06 55.04 60.64 113.68 55.57 20.98 71.98 8.44 37.05 37.23 25.57

110.69 104.40 44.31 55.72 61.05 114.86 55.96 21.18 72.70 8.57 37.29 37.40 25.75

111.06 105.05 44.55 56.40 61.47 116.04 56.35 21.39 73.42 8.70 37.54 37.58 25.93

111.30 105.44 44.70 56.82 61.73 116.77 56.59 21.51 73.87 8.78 37.69 37.69 26.04

111.67 106.09 44.95 57.50 62.14 117.95 56.98 21.71 74.59 8.91 37.93 37.86 26.22