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BTDStocks.com Wednesday, February 16, 2011 End-of-Day Update

|Includes: SPDR Dow Jones Industrial Average ETF (DIA), EUO, FDO, PSQ, QQQ, RWM, SH, SPY, TIP, TLT, UUP

Today's market action moved the major indexes to new high ground.  In fact, the Nasdaq Composite is within striking ground of being at the highest level within the last decade.  Investor participation and market breadth was strong.  Keeping with the trend we are raising the support/resistance levels on the DJIA (NYSEARCA:DIA), S&P 500 (NYSEARCA:SPY), and Nasdaq Composite (QQQQ) (see below).  Volatility (VIX) remains low and investor complacency high.  I cannot find many people right now who believe the market is due for a correction.  However, we continue to feel the risks outweigh the rewards for putting new money to work. The prudent approach indicates to protect profits and keep losses small based on the stock market direction. At a minimum you should be tightening your stop losses.  If you need to own stocks, please see our open watch list below.  In our watch list today (as we mentioned last night in our blog) we removed Family Dollar Stores (symbol: FDO) from our watch list based on the news it received a buyout offer for between $55-$60 a share.  In 26 days (FDO) returned 24.3% while on our watch list.  In addition, we added our fourth positions to the ProShares Short S&P Fund (symbol: SH), the ProShares Short QQQ Fund (symbol: PSQ), and the Short Russell 2000 Fund (symbol: RWM) today.  


No positions in securities mentioned.