BTDStocks.com Tuesday, December 28, 2010 End-Of-Day Update

Just like in yesterday's session stocks erased early losses and finished mixed on below average trade. As we have been saying this has become the current trend with many traders away from their desks during the holiday season. We are keeping the support levels the same on the DJIA (DIA), S&P 500 (SPY), and Nasdaq Composite (QQQQ) (see below) and resistance levels the same on the S&P 500 and Nasdaq Composite (see below). On the DJIA we are adjusting the resistance level back to 11,584 (we had it at this level last week and then lowered it yesterday). However, under the hood and based on the current stock market direction we feel the smart money investors are selling into strength and taking their profits off the table. Overall, we continue to 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. SUMMARY DJIA: Up 0.2% to 11,576 S&P 500: Up 0.1% to 1,259 Nasdaq Composite: Down 0.2% to 2,663 BREADTH FOR NYSE Advancing Issues: 1,460 Declining Issues: 1,571 Advance/Decline Ratio: .9 to 1 New Highs: 122 New Lows: 10 High/Low Ratio: 12 to 1 SUPPORT/RESISTANCE LEVELS DJIA: 11,444/11,584 S&P 500: 1,242/1,259 Nasdaq Composite: 2,638/2,671 SECTOR ANALYSIS Energy and Utilities were the best performing sectors up 0.4% while Consumer Discretionary was the worst performing sector down 0.2%. Other Sectors: Consumer Staples Up 0.3% Financials Flat Health Care Up 0.1% Industrials Down 0.1% Materials Up 0.2% Technology Down 0.1% WATCH LIST SYMBOLS (APOL)-since 10/28/10 (SH)-since 11/12/10 (NUVA)-since 11/12/10 (CSCO)-since 12/2/10 (PSQ)-since 12/8/10 (UUP)-since 12/8/10 (EUO)-since 12/8/10 (RWM)-since 12/16/10 No positions in securities mentioned. www.btdstocks.com