The major indexes all had small losses today on lackluster trade which has not only been the theme during the holiday season but for most of December as well. With the last trading day of the year tomorrow we would expect more of the same. However, we are expecting a pickup in volatility once the New Year begins and a possible overdue correction for stocks. We are keeping the support/resistance levels the same for the DJIA (DIA), S&P 500 (SPY), and Nasdaq Composite (QQQQ) except slightly lowering the resistance level on the DJIA (see below). Overall, we feel the best approach based on the current stock market direction 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. In our watch list we are going to remove Apollo Group (APOL) and NuVasive (NUVA) at tomorrow's market open prices. Apollo Group announces earnings next week and we would rather have the stock off our list before the New Year and before earnings comes out. NuVasive is bumping up against its 50-day moving average and we feel it could have a hard time breaking this level. Through today's close Apollo and NuVasive are up 5.1% (in 63 days) and 3.6% (in 48 days), respectively since adding them to the watch list.
SUMMARY
DJIA: Down 0.1% to 11,570
S&P 500: Down 0.2% to 1,258
Nasdaq Composite: Down 0.2% to 2,663
BREADTH FOR NYSE
Advancing Issues: 1,526
Declining Issues: 1,479
Advance/Decline Ratio: 1.03 to 1
New Highs: 143
New Lows: 2
High/Low Ratio: 72 to 1
SUPPORT/RESISTANCE LEVELS
DJIA: 11,444/11,585
S&P 500: 1,242/1,260
Nasdaq Composite: 2,638/2,671
SECTOR ANALYSIS
Energy was the best performing sector up 0.1% while Health Care was the worst performing sector down 0.4%.
Other Sectors:
Consumer Discretionary Down 0.2%
Consumer Staples Down 0.2%
Financials Down 0.3%
Industrials Down 0.2%
Materials Flat
Technology Down 0.2%
Utilities Down 0.2%
WATCH LIST SYMBOLS
APOL (since 10/28/10)-removing from watch list at tomorrow's market open price
(SH)-since 11/12/10
NUVA (since 11/12/10)-removing from watch list at tomorrow's market open price
(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
Read brettstockblog's blog in RSS
December 30, 2010
Share This