BTDStocks.com Friday, December 3, 2010 End-Of-Day Update

When we first heard the jobs report this morning we thought today could be a tough day for stocks. But it is best to follow how the market reacts to the news rather than the news itself. The action today for the DJIA (DIA), S&P 500 (SPY), and Nasdaq Composite (QQQQ) was very good considering the jobs report came in well below expectations. We have been talking recently how the action in the stock market has been a constructive pullback rather than an all out correction. Until something changes we still feel the same way. However, we did point out last night that we feel it is getting more difficult for the market to rally higher as the bull market that began in March 2009 gets older. As a result, we continue to believe the prudent approach is to own smaller positions in stocks (see our watch list below) right now just in case the market decides to change its trend to the downside. This way you benefit if the market continues to move higher and don't get hurt if it decides to move down. We could have some additions to the watch list before Monday's open. Please check us out on Twitter before then. SUMMARY DJIA: Up 0.2% to 11,382 S&P 500: Up 0.3% to 1,225 Nasdaq Composite: Up 0.5% to 2,591 BREADTH FOR NYSE Advancing Issues: 1,875 Declining Issues: 1,135 Advance/Decline Ratio: 2 to 1 New Highs: 264 New Lows: 8 High/Low Ratio: 33 to 1 SUPPORT/RESISTANCE LEVELS DJIA: 11,204/11,444 S&P 500: 1,200/1,226 Nasdaq Composite: 2,543/2,593 SECTOR ANALYSIS Materials was the best performing sector up 0.8% while Health Care was the worst performing sector unchanged. Other Sectors: Consumer Discretionary Up 0.1% Consumer Staples Flat Energy Up 0.4% Financials Up 0.3% Industrials Up 0.2% Technology Up 0.2% Utilities Up 0.2% 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