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Richard Suttmeier is the Chief Market Strategist at www.ValuEngine.com.ValuEngine is a fundamentally-based quant research firm in Newtown, PA. ValuEnginecovers over 7,000 stocks every day.

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July 8, 2011 Stock s are Overvalued / Overbought w i t h May 2 nd Highs in Sight .

The May 2nd highs are in sight led by a new all time high for Dow Transports at 5627.85. The

May 2

nd

highs are 12,876 Dow Industrial Average, 1370.58 SPX, 2887.75 NASDAQ, 2417.83 NDX868.57 Russell 2000. This upside is not surprising based upon my proprietary analytics as Iprojected wider trading ranges in the second half of 2011. The upside is to my new monthlyrisky levels at 13,155 Dow Industrial Average, 1422.8 SPX, 2975 NASDAQ, 2483 NDX, 5736 DowTransports, and 924.95 Russell 2000. I still say that we will see Dow 11.491 in the second half.Fundamentally stocks are overvalued but not yet near a ValuEngine Valuation Watch, which wedid issue at the May 2nd highs.

10-Year Note (3.153) The yield on the 10-Year US Treasury is back above its 50-day and 200-daysimple moving averages at 3.088 and 3.142 with my quarterly risky level at 3.052. Todays value levelis 3.345 with a weekly risky level at 2.957.

Courtesy of Thomson / Reuters

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Comex Gold ($1531.5) Gold remains above its 50-day simple moving average at $1520.4, sotheres potential to weekly and monthly risky levels at $1537.2 and $1547.9. Daily and semiannual

value levels are $1521.4 and $1469.9. We need a weekly close in July above $1547.9 to inflate thebubble further as semiannual and quarterly risky levels are $1644.8 and $1655.1.

Courtesy of Thomson / Reuters

Nymex Crude Oil ($98.58) The 200-day simple moving average is $93.49 with the 50-day at

$99.47. Weekly and daily pivots are $96.28 and $99.74 and my annual pivots at $99.91 and $101.9.

Courtesy of Thomson / Reuters

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The Euro (1.4354) Monthly and quarterly value levels are 1.4133 and 1.3728 with a weekly pivot at1.4326, the 50-day simple moving average at 1.4377, and daily and semiannual risky levels at 1.4613

1.4752 and 1.4872.

Courtesy of Thomson / Reuters

Daily Dow: (12,719) The daily chart is overbought with the 50-day simple moving average at 12,381and a daily risky level at 12,982. My weekly and annual value levels are 11,974 and 11,491.with

monthly, quarterly and annual risky levels at 13,155, 13,839 and 13,890.

Courtesy of Thomson / Reuters

8/6/2019 Stocks are Overvalued / Overbought with May 2nd Highs in Sight.

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