After suffering strong losses yesterday the market gained today to recover some of its losses. Howver, stocks did not give a clear indication that investors were once again buying stocks. Market breadth was ok. Keeping with the markets pace we are raising the support/resistance levels on the DJIA, S&P 500, and Nasdaq Composite (see below). The DJIA and S&P 500 were able to close above their respective 50-day moving averages. The Nasdaq Composite remains below its 50-day moving average. In some ways investors seemed to cheer the market’s ability to recover slightly on Friday as the Volatility Index (the VIX) declined 8.2% to 20.08 suggesting a pickup in complacency among market participants. Over the past month the VIX has been trying to recapture its 200-day moving average. If the VIX can conquer this level then one could expect further declines for stocks. Overall, as we have been saying defense continues to be the smart move right now based on the stock market direction. If you need to own stocks, please see our watch list below.      
 
SUMMARY
 
DJIA: Up 0.5% to 12,044
S&P 500: Up 0.7% to 1,304
Nasdaq Composite: Up 0.5% to 2,716
 
SUPPORT/RESISTANCE LEVELS
 
DJIA: 11,998/12,069
S&P 500: 1,302/1,306
Nasdaq Composite: 2,701/2,723
 
BREADTH FOR NYSE
 
Advancing Issues: 1,958
Declining Issues: 1,055
Advance/Decline Ratio: 1.9 to 1
 
New Highs: 28
New Lows: 14
High/Low Ratio: 2 to 1
 
SECTOR ANALYSIS
 
Energy was the best performing sector up 1.7% while Consumer Staples was the worst performing sector up 0.1%.
 
Other Sectors:
Consumer Discretionary Up 0.6%
Financials Up 0.7%
Health Care Up 0.3%
Industrials Up 1.2%
Materials Up 1.5%
Technology Up 0.4%
Utilities Up 0.2%
 
OPEN WATCH LIST SYMBOLS (Through Friday, March 11, 2011)
 
(SH) added @ $46.03 on 11/12/10; current price @ $41.97; 8.8% loss 
(PSQ) added @ $35.05 on 12/8/10; current price @ $33.23; 5.2% loss
(RWM) added @ $32.79 on 12/16/10; current price @ $31.11; 5.1% loss
(UUP) added @ $22.80 on 1/14/11; current price @ $22.03; 3.4% loss
(EUO) added @ $20.30 on 1/14/11; current price @ $18.59; 8.4% loss
(SH) added @ $42.38 on 1/27/11; current price @ $41.97; 1.0% loss
(PSQ) added @ $32.91 on 1/27/11; current price @ $33.23; 1.0% gain 
(RWM) added @ $31.57 on 2/1/11; current price @ $31.11; 1.5% loss
(UUP) added @ $22.20 on 2/1/11; current price @ $22.03; 0.8% loss 
(EUO) added @ $18.97 on 2/1/11; current price @ $18.59; 2.0% loss
(SH) added @ $41.70 on 2/7/11; current price @ $41.97; 0.6% gain
(PSQ) added @ $32.67 on 2/7/11; current price @ $33.23; 1.7% gain 
(RWM) added @ $31.01 on 2/7/11; current price @ $31.11; 0.3% gain
(TLT) added @ $89.22 on 2/11/11; current price @ $91.55; 2.6% gain
(TIP) added @ $105.39 on 2/11/11; current price @ $109.18; 3.6% gain
(SH) added @ $41.10 on 2/16/11; current price @ $41.97; 2.1% gain
(PSQ) added @ $31.91 on 2/16/11; current price @ $33.23; 4.1% gain
(RWM) added @ $30.20 on 2/16/11; current price @ $31.11; 3.0% gain
(UUP) added @ $22.14 on 2/24/11; current price @ $22.03; 0.5% loss
(EUO) added @ $18.92 on 2/24/11; current price @ $18.59; 1.7% loss
(AAPL) added @ $340.33 on 2/24/11; current price @ $351.99; 3.4% gain
(AGO) added @ $15.25 on 2/24/11;  current price @ $14.26; 6.5% loss
(AGO) added @ $13.96 on 3/1/11; current price @ $14.26; 2.1% gain
(FDO) added @ $50.28 on 3/2/11; current price @ $51.27; 2.0% gain
(UUP) added @ $21.94 on 3/4/11; current price @ $22.03; 0.4% gain
(EUO) added @ $18.38 on 3/4/11; current price @ $18.59; 1.1% gain
 
(SH) overall average of four positions: average cost @ $42.80; current price @ $41.97; 1.9% loss
(PSQ) overall average of four positions; average cost @ $33.14; current price @ $33.23; 0.3% gain
(RWM) overall average of four positions; average cost @ $31.39; current price @ $31.11; 0.9% loss
(UUP) overall average of four positions; average cost @ $22.27; current price @ $22.03; 1.1% loss
(EUO) overall average of four positions; average cost @ $19.14; current price @ $18.59; 2.9% loss
(AGO) overall average of two positions; average cost @ $14.61; current price @ $14.26; 2.4% loss
 
CLOSED WATCH LIST SYMBOLS
 
(UUP) added @ $22.56 on 10/20/10; removed @ $23.51 on 11/30/10; 4.2% gain
(EUO) added @ $19.19 on 10/20/10; removed @ $21.65 on 11/30/10; 12.8% gain
(APOL) added @ $37.77 on 10/28/10; removed @ $39.97 on 12/31/10; 5.8% gain
(NUVA) added @ $25.11 on 11/12/10; removed @ $26.03 on 12/31/10; 3.7% gain
(DLR) added @ $52.22 on 11/26/10; removed @ $53.01 on 12/10/10; 1.5% gain 
(CSCO) added @ $19.36 on 12/2/10; removed @ $20.91 on 1/6/11; 8.0% gain 
(UUP) added @ $23.14 on 12/8/10; removed @ $23.37 on 1/10/11; 1.0% gain 
(EUO) added @ $20.79 on 12/8/10; removed @ $21.73 on 1/10/11; 4.5% gain 
(FDO) added @ $44.64 on 1/21/11; removed @ $55.50 on 2/16/11; 24.3% gain 
(GDX) added @ $55.04 on 1/27/11; removed @ $58.58 on 2/22/11; 6.4% gain
 
 
Our watch list/stock of the day is hypothetical and we do not personally execute any transaction based on it.  All prices are based on market open prices on the dates listed above unless position was added/removed from watch intra-day as noted in blog posts.