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Reversal-Oriented Trading Continues as Markets Prepare to fall.

May 19, 2011 6:53 AM ET
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Banks, Homebuilders, chartest

Seeking Alpha Analyst Since 2006

I am the Founder & CEO at Global Market Consultants, Ltd. I consider myself as a Financial Engineer with an engineering degree from Georgia Tech and a Master of Science degree from Brooklyn Poly. In 1972 I began my career in the financial services industry trading U.S. Treasury securities in the primary dealer community. I became the first long bond trader for Bache in 1978, and formed the Government Bond Department at LF Rothschild in 1981, helping establish that firm as a primary dealer in 1986. This experience gave me the insights to be an expert on monetary policy, which I feature in my newsletters, and market commentary. I formed Global Market Consultants Ltd at the end of 1988 and expanded on my analysis to include proprietary analytics. While operating Global Market Consultants I was the U.S. Treasury Strategist at Smith Barney 1991 through 1995, was Chief Financial Strategist at William R. Hough in St. Petersburg, Florida 1997 through 1999, and was Chief Market Strategist at Joseph Stevens 1999 into 2008. I began covering U.S. equities in 1997 and began to use ValuEngine as my stock screening tool in 2002 before joining them as Chief Market Strategist between September 2008 and November 2014. I was the Chief Market Strategist at Niagara International Capital Limited between December 2009 and December 2014. In 2005 through 2007 I wrote columns on RealMoney.com and authored TheStreet.com Technology Report. My unique coverage called for the housing bubble to pop in 2005 and for regional banks to collapse in 2006 and early-2007. This is when my proprietary analytics became known as value levels at which to buy on weakness and risky levels at which to sell on strength. I became an Expert Contributor for TheStreet.com in April 2012 and currently write one or two stories a day covering subjects such as: The housing market, community and regional banks, momentum stocks, earnings profiles both before companies report quarterly results and provide scorecards after reporting results. Many of my stories we include moving averages, momentum readings, analysts’ earnings estimates, and value levels and risky levels. Over the years I made frequent appearances on financial TV beginning in 1993 on CNBC covering the U.S. Treasury auctions and as a substitute for John Murphy on his segment called ‘Tech Talk’. I also occasionally appeared on CNN and Bloomberg. On almost every holiday I appeared for an hour covering stocks on a call-in / email-the-expert ‘Talking Stocks’ show on CNNfn. In 2002 I had my own show on Yahoo Finance TV called, ‘Traders’ Club with Richard Suttmeier’. When Fox Business began in late-2007 I was a frequent guest on ‘Money for Breakfast’. I also made appearances on Reuters TV, Yahoo Finance Breakout and BNN in Toronto. In recent years I shifted my focus to making presentations to various investor groups such as: MBA students at the University of Florida and South Florida, The American Association of Individual Investors, Wells Fargo Advisors, The Executive Form at the National Arts Club in NYC, Investors Roundtable of Wilmington NC, The Market Technicians Association, The Information Management Network when they cover Florida Banks in Ft Lauderdale, and the University of Tampa Investment Club. I was president of the Society for the Investigation of Recurring Events in NYC from 2000 into 2009. My background began on Long Island, New York. I graduated from Bay Shore High School in 1962, and was a member of the Honor Society, Golf Team, Math Team and Band. I graduated from Georgia Tech in Atlanta with a Bachelor of Industrial Engineering Degree in 1966, and was a member of Chi Phi Fraternity, the freshmen Golf Team, and was the captain of the Bowling team. I won the South East Regional Bowling Tournament in 1964 and won the National Intercollegiate Bowling Championship in the Doubles Event that same year. I graduated from Brooklyn Poly in 1970 with a Master of Science in Operations Research, Systems Analysis. My first job out of Georgia Tech was with Grumman Aerospace on Long Island 1966 through 1970 with project assignments on the Lunar Module and F-14 Tomcat Fighter Jet contract proposal. I was with Bank of New York in 1971, as the Senior Systems Analyst for computer applications for the Bank’s International Division. When I shifted my to Wall Street In 1972 I became a U.S. Government securities trader at Briggs Schaedle, a primary dealer where my father was Vice Chairman and my brother was Sales Manager. In 1977 I joined Loab Rhodes as a U.S. Treasury trader. Then my career advanced as noted above. I have been married to Linda since June 1969 and we are the parents of Stephen and Jason Suttmeier. Stephen has been married to Jennifer since 2004 and we have a granddaughter Emily and a grandson Robert. We have been living in Land O’ Lakes, Florida with Jason and his partner James since June 2009.
The 10-Year yield stalled shy of its 200-day simple moving average at 3.075. Comex gold is trying to get back above $1500 the Troy ounce. Nymex crude oil returned to my annual pivots at $99.91 and $101.92. The euro versus the dollar stays below its 50-day simple moving average at 1.4334. The Dow Industrial Average stayed above its 50-day simple moving average at 12,365.
 
10-Year Note – (3.173) Weekly, Monthly, annual and quarterly value levels are 3.407, 3.757, 3.796 and 4.016 with a daily pivot at 3.178, and annual, and semiannual risky levels at 3.120, 2.690, 2.441, and 2.322. The 200-day simple moving average looms at 3.075.
 
Courtesy of Thomson / Reuters
 
Comex Gold – ($1494.3) Semiannual and annual value levels are $1452.6 and $1356.5 with daily, quarterly, weekly and monthly risky levels at $1506.0, $1523.1, $1551.0 and $1589.3.
 
Courtesy of Thomson / Reuters
 
Nymex Crude Oil ($99.70) My semiannual value level is $87.52 with annual pivots at $99.91 and $101.92, and semiannual, weekly, monthly and quarterly risky levels at $107.14, $111.67, $119.17 and $120.52. The 200-day simple moving average is a support at $89.91.
 
 
Courtesy of Thomson / Reuters
 
The Euro – (1.4243) My daily value level is 1.4138 with a quarterly pivot at 1.4308, and weekly, quarterly and monthly risky levels at 1.4516, 1.4624 and 1.5144.
 
Courtesy of Thomson / Reuters
Daily Dow: (12,560)My annual value level is 11,491 with a daily pivot at 12,587, and weekly, monthly, quarterly and annual risky levels at 12,641, 13,134, 13,663, 13,774 and 13,890.
 
Courtesy of Thomson / Reuters
 
S&P 500 (1340.7) My daily pivot is 1342.4 with the May 2nd high at 1370.58. A close this week below the five-week modified moving average at 1332.1 shifts the weekly chart profile to negative.
 
NASDAQ (2815) The five-week simple moving average is 2803 with a daily risky level at 2827 and the May 2nd high at 2887.75. A close this week below 2803 shifts the weekly chart profile to negative.
 
NASDAQ 100 (NDX) (2363) The five-week modified moving average is 2356 with a daily risky level at 2370 and the May 2nd high at 2417.83. A close this week below 2356 shifts the weekly chart profile to negative.     
 
Dow Transports (5421) The five-week modified moving average is 5333 with a daily pivot at 5382 and the May 2nd high at 5565.78. A close this week below 5333 shifts the weekly chart profile to negative.
 
Russell 2000 (833.45) The five-week modified moving average is 835.67 with a daily risky level at 840.60 and the May 2nd high at 868.57. A close this week below 835.67 shifts the weekly chart profile to negative.
 
The SOX– (437.59) The five-week modified moving average is 441.70 with a daily pivot at 435.29. A close this week below 441.70 shifts the weekly chart profile to negative.
 
Definition of MOJO – This is my term for technical momentum. I use what’s called “12x3x3 slow stochastic readings” from daily, weekly and monthly charts. The scale is zero to 10.0 where above 8.0 is overbought and below 2.0 is oversold.
 
Richard Suttmeier
Chief Market Strategist
ValuEngine.com
(800) 381-5576
 
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Send your comments and questions to Rsuttmeier@Gmail.com. For more information on our products and services visit www.ValuEngine.com
 
As Chief Market Strategist at ValuEngine Inc, my research is published regularly on the website www.ValuEngine.com. I have daily, weekly, monthly, and quarterly newsletters available that track a variety of equity and other data parameters as well as my most up-to-date analysis of world markets. My newest products include a weekly ETF newsletter as well as the ValuTrader Model Portfolio newsletter. You can go to http://www.valuengine.com/nl/mainnl to review sample issues and find out more about my research.
 
“I Hold No Positions in the Stocks I Cover.”

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