February 25, 2008
Long Term Market Analysis:
The Investment Rate is the most accurate leading
longer-term economic and stock market indicator
available; it told us in advance that 2007 would be a major
transition year and that the market would be ending an
uptrend that began in 1981. Further, according to
the Investment Rate, the Market has already began a
downtrend that will eventually be comparable to the
Great Depression and the stagflation period of the
1970s. Anyone interested in more information about
the Investment Rate should visit
http://www.stocktradersdaily.com/Main/services/investment%20rate.html
Strategic Plan for 2008:
With the findings of the Investment Rate in tow, Stock
Traders Daily developed a strategic trading strategy
in August of 2007. The goal of that strategy is to
offer an alternative to longer term, buy and hold
investments. Since August the
strategic plan has annualized about 100%. The
objective of the plan is to offer buy signals and short
signals when reversal triggers occur. On February
11, Stock Traders Daily identified another reversal
trigger, and the next leg of the strategic plan for 2008
began. The strategic plan helps to keep you ahead of the
curve at all times, it helps you go with the flow of the market, and
it helps you maximize your returns. If you would
like to review it you can visit
www.stocktradersdaily.com.
Automated Trading:
Our ATAP program was designed so people who want to
engage the risk controls of active trading strategies,
but who also have personal obligations which restrict
their ability to watch the Market, can still do so.
Take advantage of these risk controls while you work,
play golf, or trade other stocks. ATAP works as
your eyes, ears, and your hands so you are free to do
other things. Click here t learn more:
http://www.stocktradersdaily.com/Main/services/atap.html
The stocks in today's report:
3M (MMM) MMM was selected
as the Stock of the Week for the week ending 2.29.08.
Since the first week of January, the Stock of the Week
selection and strategy as offered by Stock Traders Daily
to its Members has returned about 20% based on a $50K
portfolio with margin. Details can be found in the
Stock of the Week section of our Website.
This analysis is being provided to
compliment this week's specific trading plan, which is
also offered in the Stock of the Week part of the
Members only section of our Website.
Our trading report for MMM
suggests that MMM recently came very close to an
official test of longer term support. Since then
the stock has beat its head against a wall of resistance
represented by longer term parameter #2 in our report.
This is a level of inflection, and the basis for this
week's specific trading plan. With our correlated
market analysis, which is part of the strategic plan
mentioned above, we have concluded that MMM has the
potential to move meaningfully this week if it can first
move above longer term parameter #2 as offered in our
report. When you read our report, pay close
attention to this parameter first and
use it to trigger a trade in MMM
according to plan. If MMM moves above
longer term parameter #2 we will expect the stock to
move higher and test longer term parameter #3 eventually
(in the same report). An official test of longer
term parameter #3 may take longer than 1 week to occur,
so we have targeted a more reasonable level for the plan
this week; that doesn't change the importance of the
inflection analysis though. If longer term
parameter #2 remains in tact, MMM will almost surely
fall back towards longer term parameter #1 over time
instead. We're not expecting a pullback from MMM,
but we need to recognize the possibility.
Our bias is clearly up, but the
stock must make a move beyond intra-channel resistance
in order to trigger our Stock of the Week plan this
week. You can review the trading report for MMM
here, but the specific plan we have chosen is available
only to Members of Stock Traders Daily in the Stock of
the Week section of our Members area:
MMM Report
Good Trading
Stock Traders Daily
http://www.stocktradersdaily.com
1.866.213.2067
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