Pts Morning Call 12.01.09

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

Tuesday

12.01.2009

CURRENT MARKET SENTIMENT

It is back to business on The Street! The indices marched to 10346(Dow) and 1096(S&P) as Dubai’s effect waned. The Street has refocused its attention internally with a positive yearly close. Having taken the weekly

pivot, the indices are poised to make a go at 10500 for the third time. With a positive ISM Mfg Index expected, and short covering, the target within reach between the next two days.

PRISM CALL

The futures are pointing to a positive opening as the market brushed off the Dubai contagion effect. There has been limited selling pressure hence buying on dips is the best strategy. Be aware Market sentiment is positive despite questionable economic fundamentals.

ECONOMIC CALENDAR

INDU & SPUZ TECHNICALS

TIME

INDICATOR

RANGE

EXPECTATION

PRIOR

10:00 am 10:00 am 10:00 am 10:00 am 10:00 am

ISM Manufacturing Pending Home Sales MoM ISM Prices Paid Construction Spending MoM Pending Home Sales YoY Total Vehicle Sales

53.5 to 56.2 -5.0% to 6.5% 60.0 to 67.0 -2.8% to 0.5% --

54.8

55.7

-1.0%

6.1%

65.0

65.0

-0.5%

0.8%

Domestic Vehicle Sales

10.10M to 11.10M 7.60M to 8.60M

ACTUAL

INDICES INDU (DOW) SPUZ (S&P)

S2

S1

PIVOT

R1

R2

10233 10262

10324

10387

10425

1082

1093

1102

1104

1086

19.8% 10.50M

10.45M

7.80M

7.94M

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

MASI Masimo receives FDA clearance for Masimo Rainbow SET Acoustic Monitoring (26.36 )

%

MARKET

PRICE




FTSE

5278.92

88.24

1.7

DAX

5731.64

105.69

1.88

HANG SENG

22113.15

291.65

1.34

NIKKEI

9572.2

226.65

2.43

CHINA

3235.363

40.062

1.25



WEAK

IBM

AA

CAT

KFT

JPM

MCD

COMMODITY

OIL

GOLD

AXP

Cutting jobless will take time, White House's Summers says Reuters.com

COMMODITY PRICES

DOW STOCKS TO WATCH STRONG

ENDP Endo Pharm tgt upped to $24 at Wedbush ahead of expected favorable Aveed outcome before tomorrow's PDUFA date (22.03 )

PRICE




77.95

0.67

1192.7



PGN Progress Energy staff recommendation viewed negatively – KeyBanc CP Canadian Pacific makes voluntary prepayment to Canadian defined benefit pension plan (48.46 )

10.40

UTX

UK manufacturing activity slips back – BBC UPGRADES & DOWNGRADES

ADBE Adobe Systems initiated with a Hold at JMP Securities; tgt $46 (35.08 )

STOCKS UPGRADED COMPANY

BROKERAGE FIRM

RATINGS CHANGE

Limited (LTD)

Soleil

Sell » Hold

$15.50

BostonPrivate Fin (BPFH)

Sun Trust Rbsn Humphrey

Neutral » Buy

$6.50

Cabot (CBT)

KeyBanc Capital Mkts

Hold » Buy

$29

Kinross Gold (KGC)

JP Morgan

Neutral » Overweight

$24

BB&T Corp (BBT)

Citigroup

Hold » Buy

Fifth Third (FITB)

Citigroup

Hold » Buy

ABT Abbott Labs removed from Conviction Buy list at Goldman; keeps Buy rating- Reuters (54.49 )

Watsco (WSO)

Piper Jaffray

Underweight » Neutral

$50 » $51

TGT Credit Suisse previews mall anchors/mass merchant November sales; favors TGT, COST, and FDO

PRICE

TARGET

STOCKS DOWNGRADED COMPANY

BROKERAGE FIRM

RATINGS CHANGE

NuVasive (NUVA)

Brean Murray

Buy » Hold

NuVasive (NUVA)

JMP Securities

Mkt Outperform » Mkt Perform

Netflix (NFLX)

Merriman

Buy » Neutral

PRICE

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TARGET

LLY Eli Lilly removed from Conviction Sell list at Goldman; keeps Sell rating- Reuters (36.73 )

'Cyber Monday' sales appear strong – WSJ

EARNINGS OVTI OmniVision beats by $0.11, beats on revs; guides Q3 EPS in-line, revs below consensus (13.96 +0.55) U.S. Chain store sales declined 0.12% in Nov 28 week vs 0.0% in prior week, according to ICSC/Goldman Sachs UTI Universal Technical Institute beats by $0.13, beats on revs (18.89 ) LDR Landauer, Inc. reports EPS in-line, beats on revs (56.88 ) WLP WellPoint issues updated guidance following the completion of NextRx sale to ESRX (54.03 ) Co issues inline guidance for FY09 (Dec), sees EPS of $5.86-5.92, excluding $3.54 net in non-recurring items, vs. $5.88 First Call consensus; previous guidance was for EPS of $5.06-5.12. COF Capital One: U.S. Treasury says starts secondary public offering of about 12.7 mln warrants to buy common stock of Capital One Financial - Reuters (38.36 )

TECHNICAL ANALYSIS

Symbol

S7

S6

S5

S4

S3

S2

S1

PIVOT

R1

R2

R3

R4

R5

R6

R7

1087.55

1088.84

1093.04

1097.24

1098.54

1099.83

1104.03

1108.23

1110.82

1115.02

Sectors SPX

1071.06 1075.26 1077.85 1082.05 1086.25

INDU

10122.06 10160.66 10184.51 10223.11 10261.71 10273.63 10285.51 10324.16 10362.81 10374.68 10386.61 10425.21 10463.81 10487.66 10526.26

NDX

1723.08 1730.72 1735.43 1743.07 1750.71

1753.07

XBD

108.44 41.02 3809.02 658.92 182.36 484.80 758.83 389.71 301.70 385.17

111.78 112.04 112.90 113.75 114.01 114.27 115.13 115.98 116.50 117.36 43.27 43.45 44.02 44.59 44.77 44.95 45.52 46.09 46.45 47.02 3900.42 3907.57 3930.88 3954.19 3961.35 3968.53 3991.81 4015.09 4029.46 4052.74 677.26 678.70 683.38 688.05 689.49 690.93 695.61 700.28 703.16 707.84 188.17 188.62 190.10 191.58 192.04 192.49 193.97 195.45 196.36 197.84 497.68 498.69 501.98 505.26 506.27 507.29 510.57 513.85 515.88 519.16 775.01 776.28 780.41 784.53 785.80 787.07 791.20 795.32 797.86 801.99 395.71 396.18 397.71 399.24 399.71 400.18 401.71 403.23 404.18 405.71 305.14 305.40 306.28 307.16 307.43 307.70 308.57 309.44 309.99 310.86 397.61 398.58 401.75 404.92 405.90 406.88 410.04 413.21 415.17 418.33

BKX TRAN OIX OSX XNG CYC UTY DRG RLX

109.29 41.59 3832.30 663.59 183.84 488.08 762.95 391.23 302.57 388.34

109.81 41.95 3846.67 666.47 184.75 490.11 765.49 392.18 303.12 390.30

110.67 42.52 3869.95 671.15 186.23 493.39 769.62 393.71 303.99 393.46

111.52 43.09 3893.23 675.82 187.71 496.67 773.74 395.23 304.86 396.63

1755.41

1763.06

1770.71

1773.06

1775.41

1783.05

1790.69

1795.40

1803.04

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

107.36 107.81 108.09 108.54 108.99 101.28 101.68 101.92 102.31 102.71 42.41 42.60 42.73 42.92 43.11 50.99 51.45 51.74 52.21 52.68 54.95 55.48 55.81 56.34 56.87 112.66 113.65 114.26 115.25 116.24 54.90 55.27 55.50 55.87 56.24 17.05 17.62 17.96 18.53 19.10 64.28 66.14 67.29 69.15 71.01 7.23 7.56 7.76 8.09 8.42 35.20 35.49 35.67 35.96 36.25 36.07 36.61 36.95 37.50 38.04 22.31 22.78 23.07 23.55 24.02

109.13 102.83 43.18 52.83 57.04 116.55 56.35 19.27 71.59 8.52 36.34 38.21 24.17

109.27 102.95 43.23 52.97 57.20 116.85 56.47 19.44 72.16 8.62 36.43 38.38 24.31

109.72 103.34 43.43 53.44 57.73 117.84 56.84 20.01 74.02 8.95 36.72 38.93 24.79

110.17 103.74 43.63 53.91 58.27 118.83 57.21 20.58 75.88 9.28 37.01 39.47 25.26

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110.31 103.86 43.69 54.06 58.43 119.14 57.32 20.75 76.46 9.38 37.10 39.64 25.41

110.45 103.98 43.75 54.20 58.59 119.44 57.44 20.92 77.03 9.48 37.19 39.81 25.55

110.90 104.37 43.94 54.67 59.12 120.43 57.81 21.49 78.89 9.81 37.48 40.36 26.03

111.35 104.77 44.13 55.14 59.65 121.42 58.18 22.06 80.75 10.14 37.77 40.90 26.50

111.63 105.01 44.26 55.43 59.98 122.03 58.41 22.40 81.90 10.34 37.95 41.24 26.79

112.08 105.40 44.45 55.90 60.51 123.02 58.78 22.97 83.76 10.67 38.24 41.79 27.27