BTDStocks.com Monday, January 10, 2011 End-Of-Day Update

Just like on Friday stocks opened weak today and then spent the rest of the session working off the losses to finish marginally mixed.  The Nasdaq Composite (QQQQ) was able to turn nearly a 1% lose into small gain of 0.2%.  Semiconductor Stocks (SOX) finished strong with a 1% gain.  This is nice to see since many of the items we use in our everyday lives require semi components.  The SOX can sometimes be a leading indicator for where stocks are headed.  Breadth was ok but participation from investors was below average and less than every trading day last week.  Staying with the trend we are raising the support levels on the DJIA (DIA), S&P 500 (SPY), and Nasdaq Composite (see below).  However, we are leaving the resistance levels the same for the three major indexes (see below).  The action today was nice but we still feel risk out-weighs reward at this point.  Plus earnings season is upon us.  The market is at a critical point and earnings most likely is going to be the catalyst right now that determines if the bull market continues or if the market is in need of a break.  Many stocks are above proper buy points.  Overall, we still feel selling into strength is right thing to do based on the current stock market direction.  If you need to own stocks, please see our watch list.  Based on our blog update from Friday we removed the US Dollar Long ETF (symbol: UUP) and Euro Short ETF (symbol: EUO) at today's market open prices. UUP and EUO were up 1.0% and 4.5% (in 33 days), respectively while they were included in our watch list. 

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No positions in securities mentioned.