BTDStocks.com Thursday, December 2, 2010 End-Of-Update

The stock market had another nice day in terms of price action with the major indexes all posting gains of 1% or higher. Breadth was strong again (not like when the rally began in March 2009-could indicate a late stage bull market) but volume figures are making it difficult to determine if the resumption of the rally is for real or just a head fake. With the jobs report due out before the open tomorrow the market has rallied the last two sessions from a preliminary report that the job numbers for November is above expectations. However, below average market participation could be an indication that investors want to see proof before investing more aggressively. If market participants don't like the jobs report it could derail the strong price action from the last few sessions. We are keeping the support levels the same and raising the resistance levels for the DJIA (DIA), S&P 500 (SPY), and Nasdaq Composite (QQQQ) (see below). For the S&P 500 and Nasdaq Composite the resistance levels are basically right where both indexes closed today. Overall, the prudent approach based on the current stock market direction continues to indicate it is ok to own small positions in stocks (see our watch list below) but continue protecting profits/limiting losses. SUMMARY DJIA: Up 1.0% to 11,362 S&P 500: Up 1.3% to 1,222 Nasdaq Composite: Up 1.2% to 2,579 BREADTH FOR NYSE Advancing Issues: 2,151 Declining Issues: 893 Advance/Decline Ratio: 2 to 1 New Highs: 273 New Lows: 6 High/Low Ratio: 46 to 1 SUPPORT/RESISTANCE LEVELS DJIA: 11,204/11,407 S&P 500: 1,200/1,223 Nasdaq Composite: 2,543/2,579 SECTOR ANALYSIS Financials (XLF) was the best performing sector up 2.6% while Consumer Staples (XLP) was the worst performing sector up 0.1%. Other Sectors: Consumer Discretionary (XLY) Up 1.3% Energy (XLE) Up 1.5% Health Care (XLV) Up 0.8% Industrials (XLI) Up 1.6% Materials (XLB) Up 1.5% Technology (XLK) Up 1.2% Utilities (XLU) Up 0.3% WATCH LIST SYMBOLS (APOL)-since 10/28/10 (SH)-since 11/12/10 (NUVA)-since 11/12/10 (DLR)-since 11/26/10 (CSCO)-since 12/2/10 Please follow us on Twitter for updates to our watch list. www.btdstocks.com