Pts Morning Call 12-10-09

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

Thursday

12.10.2009

CURRENT MARKET SENTIMENT

Flirting with the kiss of death at 1091(S&P) for the third time. The S&P finished at 1096 and the Dow followed at 10337. While the initial claims are weak,

the continuous claims may be good enough to consolidate the gains. All will depend on holding 1096 (S&P).

PRISM CALL

Market is trading up on the mixed employment data. With the market gapping up, we are looking at fading the first move. Take profits as volume will be lite again today.

ECONOMIC CALENDAR

INDU & SPUZ TECHNICALS

TIME

INDICATOR

RANGE

EXPECTATION

PRIOR

ACTUAL

INDICES

8:30 am

Trade BalanceOct

-$41.3B to -$32.0B

-$36.8B

-$36.5%

-32.9

8:30 am

Initial Jobless Claims

380K to 490K

455K

457K

474

8:30 am

Continuing Claims

5300K TO 5500K

INDU (DOW) SPUZ (S&P)

5450K

5465K

5157

10:30 am

Natural Gas Storage Change

-60 to -34

-47

2

2:00 pm

Monthly Budget Statement

-$170.0B to $100.0B

-$134.1B

-$125.2B

S2

S1

PIVOT

R1

R2

10198 10239

10305

10371

10412

1082

1093

1100

1104

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

5238.18

34.29

0.66

DAX

5718.38

70.54

1.25

HANG SENG

21700.04

41.7207

-0.19

NIKKEI

9862.82

141.6958

-0.45

CHINA

3254.264



14.6958

WEAK

HPQ

JNJ

IBM

CVX

MMM

KO

PFE

AXP

CBY Hershey, trust near Cadbury decision - WSJ (51.06 ) U.S foreclosure activity decreases 8% in November according to RealtyTrac U.S. foreclosure market report

0.45

COMMODITY PRICES

DOW STOCKS TO WATCH STRONG

C Citigroup in talks for equity offering - Financial Times (3.86 )

%

MARKET

COMMODITY

PRICE




OIL

71.21

0.54

GOLD

1125.2

4.7999



C Citigroup: Deutsche Bank estimates 5-15% EPS dilution longer term from repaying TARP (3.86 ) -UpdateChina accuses U.S., Russian cos of steel dumping – WSJ European market summary; miners, oils weak, banks slightly higher: FTSE +0.54%, CAC +0.74%, DAX +0.78%

UPGRADES & DOWNGRADES

Britain, France urge tax on bankers' bonuses – AFP

STOCKS DOWNGRADED COMPANY Massey Energy (MEE)

BROKERAGE FIRM BMO Capital Markets

RATINGS CHANGE

PRICE

Outperform >> Market Perform

36.83

TARGET

RIMM Research In Motion ests raised at Kaufman; anticipates solid November quarter (64.14 ) HK-listed auto shares slide after Beijing tax policy - Reuters.com Asia markets close; Shanghai Composite slightly higher on consumption incentives: Shanghai Composite +0.45%, Hang Seng -0.19%, Nikkei 1.42%, Sensex +0.37%

Page |2 www.prismtradingschool.com

EARNINGS

EP El Paso issues in-line guidance for FY10, sees EPS of $0.75-$0.95 vs $0.88 First Call Consensus (9.39 ) SFD Smithfield Foods beats by $0.13, reports revs in-line (16.86 ) CIEN Ciena misses by $0.05, beats on revs (13.23 ) ROK Rockwell Automation reaffirms FY10 EPS and rev guidance at BofA Merrill Industrials Conference today (46.16 ) LLY Eli Lilly issues in-line guidance for FY10 (Dec), sees EPS of $4.65-4.85 vs. $4.74 First Call consensus. (36.56 ) LSCC Lattice Semi raises Q4 rev guidance (2.66 ) COST Costco reports EPS in-line, revs in-line (58.66 PLL Pall Corp reports EPS in-line, misses on revs; guides FY10 EPS above consensus (31.39 -0.18) TECHNICAL ANALYSIS Symbol

S7

S6

S5

S4

S3

S2

S1

PIVOT

R1

R2

R3

R4

R5

R6

R7

1088.70

1092.96

1097.22

1098.54

1099.85

1104.11

1108.37

1111.00

1115.26

Sectors SPX

1070.66 1074.92 1077.55 1081.81 1086.07 1087.39

INDU

10091.70 10132.44 10157.61 10198.34 10239.08 10251.66 10264.19 10304.98 10345.77 10358.30 10370.89 10411.62 10452.36 10477.53 10518.26

NDX

1716.48 1728.62 1736.12 1748.27 1760.41 1764.16

XBD

109.11 42.52 3940.91 639.19 173.08 471.87 770.94 406.83 301.26 390.19

BKX TRAN OIX OSX XNG CYC UTY DRG RLX

109.77 42.71 3960.93 643.80 174.81 475.48 775.10 408.16 302.39 392.31

110.18 42.83 3973.30 646.65 175.88 477.71 777.67 408.98 303.09 393.61

110.85 43.03 3993.33 651.25 177.60 481.31 781.83 410.31 304.23 395.73

111.51 43.22 4013.35 655.86 179.33 484.92 785.99 411.64 305.36 397.85

1831.49

1843.64

111.72 111.92 112.59 113.25 113.46 43.28 43.34 43.54 43.73 43.79 4019.54 4025.70 4045.75 4065.80 4071.96 657.28 658.70 663.31 667.93 669.34 179.86 180.39 182.12 183.85 184.38 486.03 487.14 490.75 494.36 495.47 787.28 788.56 792.72 796.89 798.17 412.05 412.46 413.79 415.12 415.53 305.71 306.06 307.20 308.33 308.68 398.50 399.15 401.27 403.39 404.04

1767.90

1780.06

1792.22

1795.95

1799.70

113.66 114.33 114.99 115.40 43.85 44.05 44.24 44.36 4078.14 4098.17 4118.19 4130.56 670.77 675.37 679.98 682.83 184.92 186.64 188.37 189.44 496.59 500.19 503.80 506.03 799.45 803.61 807.77 810.34 415.94 417.27 418.60 419.42 309.03 310.17 311.30 312.00 404.69 406.81 408.93 410.23

1811.85

1823.99

116.07 44.56 4150.59 687.43 191.16 509.63 814.50 420.75 313.14 412.35

109.16 102.62 43.44 53.45 59.35 110.76 54.20 20.21 69.47 8.16 36.24 35.39 24.93

110.46 103.83 44.33 55.65 60.24 113.98 55.48 21.14 72.60 8.39 37.12 37.23 25.66

112.06 105.32 45.44 58.37 61.35 117.96 57.07 22.29 76.47 8.66 38.19 39.52 26.58

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

107.42 107.86 108.14 108.58 109.02 101.00 101.42 101.67 102.08 102.50 42.24 42.55 42.73 43.04 43.35 50.49 51.25 51.71 52.46 53.22 58.15 58.46 58.64 58.95 59.26 106.44 107.54 108.22 109.32 110.42 52.47 52.91 53.18 53.62 54.06 18.97 19.28 19.48 19.80 20.11 65.27 66.34 67.00 68.07 69.14 7.86 7.94 7.99 8.06 8.14 35.07 35.37 35.56 35.85 36.15 32.91 33.54 33.93 34.56 35.19 23.94 24.19 24.34 24.60 24.85

109.30 102.75 43.53 53.68 59.44 111.10 54.33 20.31 69.80 8.19 36.34 35.58 25.00

109.74 103.16 43.84 54.43 59.75 112.20 54.77 20.63 70.87 8.26 36.63 36.21 25.26

110.18 103.58 44.15 55.19 60.06 113.30 55.21 20.94 71.94 8.34 36.93 36.85 25.51

Page |3 www.prismtradingschool.com

110.32 103.70 44.24 55.42 60.15 113.64 55.35 21.04 72.27 8.36 37.02 37.04 25.59

110.90 104.24 44.64 56.40 60.55 115.08 55.92 21.46 73.67 8.46 37.41 37.86 25.92

111.34 104.66 44.95 57.16 60.86 116.18 56.36 21.77 74.74 8.54 37.71 38.50 26.17

111.62 104.91 45.13 57.62 61.04 116.86 56.63 21.97 75.40 8.59 37.90 38.88 26.32