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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 Friday, April 8, 2011 End-of-Day Update  0 comments
    Apr 9, 2011 10:47 AM | about stocks: DIA, SPY, SOX, SH, PSQ, RWM, UUP, EUO, AAPL, FDO, CSCO, CCJ, TLT, TIP, VXX

    Stocks opened higher in today's session only to reverse course and selloff in the last few hours of trading. The intra-day losses were deeper at one point but the market recovered some of the losses by the closing bell. Market breadth finished negative and there was no indication that investors were participating in the market today with strength. Staying with the current stock market direction trend we are lowering the support/resistance levels on the DJIA (DIA), S&P 500 (SPY), and Nasdaq Composite (QQQQ) (see below). The S&P 500 and Nasdaq Composite continue to find resistance near the 1,333 and 2,799-2,800 levels, respectively. In addition, the Semiconductor Index (the SOX) failed again at its 50-day moving average for the third session in a row. Small cap stocks as measured through the Russell 2000 were much weaker than the broader indexes and fell about 1.0%. The market worked off some complacency today as the Volatility Index (the VIX) rose 4.4% but remains at high levels. The market continues to show a high level of complacency and low volatility with the smallest number of bearish investment advisors since 2003. Next week should be telling for the market with earnings season starting. Expectations seem to be set pretty high as most analyst estimates have risen. Any impact to costs as a result of higher material/commodity prices might not be fully factored into earnings estimates. A low complacency environment coupled with high expectations for earnings might be the recipe for a market about to underperform. Based on the current stock market direction keeping things light and cautious seems like the prudent approach. Be careful with adding to stock positions, protect profits, and keep losses small. If you need to own stocks, please see our watch list below. 

    No positions in securities mentioned.

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