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BTDStocks.com Wednesday, December 22, 2010 End-Of-Day Update

|Includes: APOL, CSCO, SPDR Dow Jones Industrial Average ETF (DIA), EUO, NUVA, PSQ, QQQ, RWM, SH, SPY, UUP

The market is sounding like a broken record with much of the same. Once again stocks rose lightly to new highs on very light trade. Investor complacency worsened on not much movement in the major indexes as the Volatility Index (VIX) rose 6.3% making another three year closing low to 15.45. In the eyes of investors it appears all is good for stocks and nothing can go wrong. We are raising the support level on the Nasdaq Composite (QQQQ) as we are staying with the trend (see below). We are keeping the support levels on the DJIA (NYSEARCA:DIA) and S&P 500 (NYSEARCA:SPY) the same. In addition, we are raising the resistance levels on all three indexes to slightly above where they closed today (see below). Overall, with risk out-weighing reward right now selling into strength continues to be the best approach based on the current stock market direction. If you need to own stocks, please see our watch list. A few of our watch list stocks (i.e. APOL and NUVA) are getting close to levels that could prove challenging so we may remove them from the watch list after the close tomorrow.               

SUMMARY

DJIA: Up 0.2% to 11,559

S&P 500: Up 0.3% to 1,259

Nasdaq Composite: Up 0.2% to 2,671

BREADTH FOR NYSE

Advancing Issues: 1,876

Declining Issues: 1,182

Advance/Decline Ratio: 1.6 to 1

New Highs: 203

New Lows: 5

High/Low Ratio: 41 to 1

SUPPORT/RESISTANCE LEVELS

DJIA: 11,444/11,584

S&P 500: 1,226/1,260

Nasdaq Composite: 2,596/2,671

SECTOR ANALYSIS

Financials was the best performing sector up 1.1% while Materials and Technology were the worst performing sectors down 0.1%.

Other Sectors:

Consumer Discretionary Up 0.1%

Consumer Staples Up 0.4%

Energy Up 0.3%

Health Care Up 0.3%

Industrials Up 0.2%

Utilities Up 0.5%

WATCH LIST SYMBOLS

(NASDAQ:APOL)-since 10/28/10

(NYSEARCA:SH)-since 11/12/10

(NASDAQ:NUVA)-since 11/12/10

(NASDAQ:CSCO)-since 12/2/10

(NYSEARCA:PSQ)-since 12/8/10

(NYSEARCA:UUP)-since 12/8/10

(NYSEARCA:EUO)-since 12/8/10

(NYSEARCA:RWM)-since 12/16/10

No positions in securities mentioned.

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