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Provides daily commentary and analysis on the direction of the stock market each trading day.
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  • BTDStocks.com Tuesday, April 5, 2011 End-of-Day Update  0 comments
    Apr 5, 2011 10:30 PM | about stocks: DIA, SPY, SOX, SH, PSQ, RWM, UUP, EUO, AAPL, FDO, CSCO, CCJ

    After opening lower stocks traded the majority of today's session positive but gave back most of the gains in the last few hours of trading. Investor participation picked up but remains below average compared to recent trends. Market breadth came in at ok levels. Based on the stock market direction we are keeping the support levels the same on the S&P 500 (NYSEARCA:SPY) and Nasdaq Composite (QQQQ) (see below). However, we are lowering the resistance level on the S&P 500 but raising it on the Nasdaq Composite (see below). For the DJIA (NYSEARCA:DIA) we are raising its support level but lowering its resistance level (see below). Technology overall once again was down and might have been down even more if not for the Semiconductor Index (the SOX). The SOX rose 2.3% as a result of merger activity. Complacency remains high and volatility low in the market. The Volatility Index (the VIX) was down 1.4% today and sits below its moving averages (21-day, 50-day, and 200-day). However, the VIX seems to be trying to establish a new base to trade up from. If this occurs volatility should pick up and stocks could see some type of correction. The best approach right now is to be very selective when opening or adding stock positions. Keep the positions small if you need to be in the market. Should the market establish a new correction you won't get whipsawed. If you need to own stocks, please see our watch list below. In our watch list today we added positions in the PowerShares Double US Dollar Index Bullish Fund (symbol: UUP) at the intra-day price of $21.75 and the ProShares UltraShort Euro (symbol: EUO) at the intra-day price of $17.70. We have now averaged into these two ETFs seven times. Also, we removed from our watch list the position in Assured Guaranty Ltd. (symbol: AGO) added on February 24, 2011 at the intra-day price of $15.05 for a 1.3% loss. AGO was added to the watch list at $15.25. There are no remaining positions in AGO on our watch list. Overall, AGO returned 4.3% in 40 days while on our watch list.

    No positions in securities mentioned.

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