BTDStocks.com Friday, January 21, 2011 End-Of-Day Update
Stocks opened today with nice gains but sold off to finish mixed. Today was January options expiration day which can cause abnormal gyrations in market activity. So far during earnings season many companies are reporting results in line or above expectations. The market appears to be selling on the news in many cases even though earnings and forecasts are meeting Wall Street’s expectations. What investors want from companies is getting tougher as the expectations for the economy grows. However, based on the trend we are slightly raising the support levels on the DJIA (DIA), S&P 500 (SPY), and Nasdaq Composite (QQQQ) and keeping the resistance levels the same for the S&P 500 and Nasdaq Composite broader market indexes (see below). For the less broad DJIA index we are raising its resistance level (see below). Overall, the market appears to be working off its overbought/complacent position. Like we have been saying the prudent approach in our opinion is to be very careful with opening new positions in stocks, protect your profits, and limit losses. If you need to own stocks, please see our open watch list below. In our watch list we added Family Dollar Stores (symbol: FDO) at today's market open price of $44.64.
No positions in securities mentioned.
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