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  • Wednesday, March 16, 2011 End-of-Day Update  0 comments
    Mar 17, 2011 12:26 AM | about stocks: DIA, SPY, QQQ, SH, PSQ, RWM, UUP, EUO, AAPL, AGO, FDO, NUAN, CSCO

    Stocks continued their selling ways today with the major indexes declining 1.9%-2.0% on strong participation from investors and on weak market breadth.  The DJIA (NYSEARCA:DIA), S&P 500 (NYSEARCA:SPY), and Nasdaq Composite (QQQQ) have quickly given up the gains for 2011.  As a result, we are lowering the support/resistance levels on the DJIA, S&P 500, and Nasdaq Composite (see below).  With each of the three indexes below their respective 21-day and 50-day moving averages the question now is are they headed for a test of their 200-day moving averages or will they find support before then.  They all closed today a good amount still above their 200-day moving averages.  The Volatility Index (VIX) once again rose dramatically and is at its highest fear level since August 2010.  Aggressive investors can continue to nibble slowly into new stock positions based on the current stock market direction.  Prudent investors may want to remain defensive and look for the market to establish a new support level before opening new stock positions.  If you need to own stocks, please see our watch list below. In our watch list we are going to remove the positions in the ProShares Short S&P Fund (symbol: SH) and ProShares Short QQQ Fund (symbol: PSQ) added on January 27, 2011 at tomorrow's market open price.  The two positions in SH and PSQ have returned 2.7% and 5.2%, respectively through today's close since being added to the watch list.  Also, we are going to remove the position added to the watch list in the Short Russell 2000 Fund (symbol: RWM) on February 1, 2011 at tomorrow's market open price.  RWM has returned 0.8% through today's close since being added to the watch list. 
    No positions in securities mentioned.

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