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BTDStocks.com Wednesday, December 29, 2010

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

The major indexes all finished up today on below average volume but gave back some of their gains in the final hour of trading.  We are leaving the support levels the same for the DJIA (NYSEARCA:DIA), S&P 500 (NYSEARCA:SPY), and Nasdaq Composite (QQQQ) (see below).   For the DJIA and S&P 500 we are slightly raising their resistance levels (see below).  The Nasdaq Composite resistance level is the same (see below).  One thing to watch going forward will be the activity in the Volatility Index (VIX).  Back on the first trading day of December the VIX gapped down.  On Monday the VIX gapped up and has spent the last two trading session working to close the gap.  With volatility very low right now and January approaching we are expecting volatility to pick up and the VIX to attempt closing the gap in the 22.00-22.50 area.  If this occurs then stock prices will probably be lower then where they are today.  Overall, we feel the best approach is to continue selling into strength and wait for a lower entry point to enter new stock positions. If you need to own stocks, please see our watch list.     

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SUMMARY

DJIA: Up 0.1% to 11,585

S&P 500: Up 0.1% to 1,260

Nasdaq Composite: Up 0.2% to 2,667

BREADTH FOR NYSE

Advancing Issues: 1,950

Declining Issues: 1,121

Advance/Decline Ratio: 1.7 to 1

New Highs: 174

New Lows: 14

High/Low Ratio: 12 to 1

SUPPORT/RESISTANCE LEVELS

DJIA: 11,444/11,603

S&P 500: 1,242/1,260

Nasdaq Composite: 2,638/2,671

SECTOR ANALYSIS

Energy was the best performing sector up 1.0% while Utilities was the worst performing sector down 0.4%.

Other Sectors:

Consumer Discretionary Up 0.3%

Consumer Staples Flat

Financials Down 0.2%

Health Care Flat

Industrials Up 0.1%

Materials Up 0.4%

Technology Up 0.2%

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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