The market indexes (DJIA, S&P 500, Nasdaq Composite) all dropped in today's session 1.1%. However, the market was able to cut their intra-day losses a significant amount. Some of the intra-day losses ranged between 1.9% and 2.1%. Market breadth was materially negative and investor participation confirmed the selling pressure today was significant. The S&P 500 and Nasdaq Composite finished below their 21-day and 50-day moving averages. The DJIA is below its 21-day moving average but remains above its 50-day moving average. As a result, we are lowering the support/resistance levels on the DJIA, S&P 500, and Nasdaq Composite (see below). The Volatility Index (the VIX) dropped 10.7% indicating investors grew increasingly nervous. Current level of the VIX has room to increase from here meaning stocks might have further to fall. The prudent approach right now based on the current stock market direction is to remain cautious when adding stock positions. If you need to own stocks, please see our watch list below.
 
SUMMARY
 
DJIA: Down 1.1% to 12,202
S&P 500: Down 1.1% to 1,305
Nasdaq Composite: Down 1.1% to 2,735
 
SUPPORT/RESISTANCE LEVELS
 
DJIA: 12,188/12,214
S&P 500: 1,300/1,306
Nasdaq Composite: 2,723/2,737
 
BREADTH FOR NYSE
 
Advancing Issues: 599
Declining Issues: 2,465
Advance/Decline Ratio: 0.2 to 1
 
New Highs: 16
New Lows: 25
High/Low Ratio: 0.6 to 1
 
SECTOR ANALYSIS
 
Consumer Staples was the best performing sector down 0.6% and Energy was the worst performing sector down 1.5%.
 
Other Sectors:
 
Consumer Discretionary Down 0.9%
Financials Down 1.4%
Health Care Down 1.1%
Industrials Down 1.4%
Materials Down 1.4%
Technology Down 0.9%
Utilities Down 0.9%
 
OPEN WATCH LIST SYMBOLS (Through Monday, April 18, 2011)
 
Transactions:
 
(SH) added @ $46.03 on 11/12/10; current price @ $41.80; 9.2% loss
(PSQ) added @ $35.05 on 12/8/10; current price @ $33.20; 5.3% loss
(RWM) added @ $32.79 on 12/16/10; current price @ $30.14; 8.1% loss
(UUP) added @ $22.80 on 1/14/11; current price @ $21.66; 5.0% loss
(EUO) added @ $20.30 on 1/14/11; current price @ $17.65; 13.0% loss
(UUP) added @ $22.20 on 2/1/11; current price @ $21.66; 2.4% loss
(EUO) added @ $18.97 on 2/1/11; current price @ $17.65; 6.9% loss
(UUP) added @ $22.14 on 2/24/11; current price @ $21.66; 2.2% loss
(EUO) added @ $18.92 on 2/24/11; current price @ $17.65; 6.7% loss
(AAPL) added @ $340.33 on 2/24/11; current price @ $331.85; 2.5% loss
(FDO) added @ $50.28 on 3/2/11; current price @ $51.96; 3.3% gain
(UUP) added @ $21.94 on 3/4/11; current price @ $21.66; 1.3% loss
(EUO) added @ $18.38 on 3/4/11; current price @ $17.65; 4.0% loss
(UUP) added @ $21.93 on 3/14/11; current price @ $21.66; 1.2% loss
(EUO) added @ $18.34 on 3/14/11; current price @ $17.65; 3.8% loss
(CSCO) added @ $17.83 on 3/14/11; current price @ $16.73; 6.2% loss
(UUP) added @ $21.72 on 3/18/11; current price @ $21.66; 0.3% loss
(EUO) added @ $17.87 on 3/18/11; current price @ $17.65; 1.2% loss
(SH) added @ $42.22 on 3/22/11; current price @ $41.80; 1.0% loss
(PSQ) added @ $33.74 on 3/22/11; current price @ $33.20; 1.6% loss
(RWM) added @ $30.71 on 3/22/11; current price @ $30.14; 1.9% loss
(CCJ) added @ $31.44 on 3/23/11; current price @ $28.12; 10.6% loss
(SH) added @ $41.49 on 3/28/11; current price @ $41.80; 0.7% gain
(PSQ) added @ $32.83 on 3/28/11; current price @ $33.20; 1.1% gain
(RWM) added @ $30.08 on 3/28/11; current price @ $30.14; 0.2% gain
(UUP) added @ $21.75 on 4/5/11; current price @ $21.66; 0.4% loss
(EUO) added @ $17.70 on 4/5/11; current price @ $17.65; 0.3% loss
(TLT) added @ $90.50 on 4/7/11; current price @ $92.88; 2.6% gain
(TIP) added @ $108.56 on 4/7/11; current price @ $110.38; 1.7% gain
(VXX) added @ $28.14 on 4/7/11; current price @ $28.13; 0.0%
(CCJ) added @ $27.65 on 4/12/11; current price @ $28.12; 1.7% gain
(CSCO) added @ $17.12 on 4/14/11; current price @ $16.73; 2.3% loss
 
Overall:
 
(SH) overall average of six positions: average cost @ $42.49; current price @ $42.29; 0.5% loss
(PSQ) overall average of six positions; average cost @ $33.19; current price @ $33.55; 1.1% gain
(RWM) overall average of six positions; average cost @ $31.06; current price @ $30.81; 0.8% loss
(UUP) overall average of seven positions; average cost @ $22.07; current price @ $21.66; 1.9% loss
(EUO) overall average of seven positions; average cost @ $18.64; current price @ $17.65; 5.3% loss
(AAPL) overall average of one position; cost @ $340.33; current price @ $331.85; 2.5% loss
(FDO) overall average of one position; cost @ $50.28; current price @ $51.96; 3.3% gain
(CSCO) overall average of two position; cost @ $17.48; current price @ $16.73; 4.3% loss
(CCJ) overall average of three positions; cost @ $29.38; current price @ $29.10; 0.9% loss
(TLT) overall average of one position; cost @ $90.50; current price @ $92.88; 2.6% gain
(TIP) overall average of one position; cost @ $108.56; current price @ $110.38; 1.7% gain
(VXX) overall average of one position; cost @ $28.14; current price @ $28.13; 0.0%
 
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
(SH) added @ $41.70 on 2/7/11; removed @ $42.71 on 3/15/11; 2.4% gain
(PSQ) added @ $32.67 on 2/7/11; removed @ $33.81 on 3/15/11; 3.5% gain
(RWM) added @ $31.01 on 2/7/11; removed @ $31.55 on 3/15/11; 1.7% gain
(SH) added @ $41.10 on 2/16/11; removed @ $42.71 on 3/15/11; 3.9% gain
(PSQ) added @ $31.91 on 2/16/11; removed @ $33.81 on 3/15/11; 6.0% gain
(RWM) added @ $30.20 on 2/16/11; removed @ $31.55 on 3/15/11; 4.5% gain
(TLT) added @ $89.22 on 2/11/11; removed @ $92.54 on 3/15/11; 3.7% gain
(TIP) added @ $105.39 on 2/11/11; removed @ $109.34 on 3/15/11; 3.7% gain
(SH) added @ $42.38 on 1/27/11; removed @ $42.91 on 3/17/11; 1.3% gain
(PSQ) added @ $32.91 on 1/27/11; removed @ $34.05 on 3/17/11; 3.5% gain
(RWM) added @ $31.57 on 2/1/11; removed @ $31.36 on 3/17/11; 0.7% loss
(AGO) added @ $13.96 on 3/1/11; removed @ $14.95 on 3/24/11; 7.1% gain
(AGO) added @ $13.90 on 3/14/11; removed @ $14.95 on 3/24/11; 7.6% gain
(NUAN) added @ $17.40 on 3/18/11; removed @ $19.59 on 3/31/11; 12.6% gain
(NUAN) added @ $17.53 on 3/14/11; removed @ $19.58 on 4/4/11; 11.7% gain
(CCJ) added @ $29.05 on 3/29/11; removed @ $31.07 on 4/4/11; 7.0% gain
(AGO) added @ $15.25 on 2/24/11; removed @ $15.05 on 4/5/11; 1.3% loss
 
The average holding period (in days) for each closed position is 32 days
The average % return for each closed position is 5.6%
 
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.