BTDStocks.com Wednesday, December 15, 2010 End-Of-Day Update

Once again stocks opened the trading session higher today and as the day went on they drifted lower to close near session lows. The data indicates investors were selling shares at a decent rate and breadth weakened even more with decliners over advancers 2 to 1 on the NYSE. In addition, the number of stocks on the NYSE making new lows was at an elevated level. The US Dollar had a strong day against the Euro and indicated that trend of the dollar rallying against the Euro on days when stocks fall remains intact. The Semiconductor Index (SOX) declined 1.1% more than twice the decline in the Nasdaq Composite. Semis many times are a leading indicator for the stock market since they are very crucial to the economy. The activity today wasn't bad enough to change our support/resistance levels on the DJIA (DIA), S&P 500 (SPY), and Nasdaq Composite (QQQQ) (see blow). We continue to believe the prudent approach based on the current stock market direction is to be cautious. If you need to own stocks, please see our watch list below. In our watch list we are adding the Short Russell 2000 ETF RWM at tomorrow's market open price. SUMMARY DJIA: Down 0.2% to 11,457 S&P 500: Down 0.5% to 1,235 Nasdaq Composite: Down 0.4% to 2,617 BREADTH FOR NYSE Advancing Issues: 1,040 Declining Issues: 2,004 Advance/Decline Ratio: .5 to 1 New Highs: 148 New Lows: 70 High/Low Ratio: 2 to 1 SUPPORT/RESISTANCE LEVELS DJIA: 11,444/11,477 S&P 500: 1,226/1,242 Nasdaq Composite: 2,580/2,638 SECTOR ANALYSIS Consumer Staples was the best performing sector up 0.1% while Utilities was the worst performing sector down 0.9%. Other Sectors: Consumer Discretionary Down 0.3% Energy Down 0.5% Financials Down 0.8% Health Care Down 0.3% Industrials Down 0.4% Materials Down 0.5% Technology Down 0.4% 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