March 10, 2008

The following analysis is based on a multi-tiered combined analysis of the Dow, S&P 500, and the NASDAQ.  This objective analysis can be used to trade DIA, SPY, and QQQQ, or any other stock that moves along with the Market; based on the correlating parameters offered in the Market Analysis pages associated with this summary and the trading report available here, you should be able to make educated decisions to buy, sell, or hold, or short.  With this link you can have immediate access to a trading report on any company that you choose; specific trading plans, including detailed support and resistance parameters, are included here: FREE Trading Report

Monday:  Could the FOMC cuts rates suddenly on Monday before the open and thwart the declines that everyone expects?  Sure they could, but counting on that is a stretch.  Instead, this analysis should be held and unless surprising events change the landscape dramatically, we should expect additional declines.  Expect the Market to begin the day with a bias to decline as it opens on Monday and expect initial support levels to be tested, so long as initial resistance remains in tact.  Our analysis suggests that initial resistance is likely to hold, and if it does, not only should initial support be tested, but further declines should be expected as well.  The end result will be another aggressive down day, if resistance holds.  Further, the longer term charts are telling us to expect the market to re-test the longer term down channel support line that was tested about 1 month ago.  The downward sloping pattern means that a lower low is likely, and we have identified this for you.  Again, this could be thwarted with an intervention by the FOMC, but for now it looks most probable per our analysis.  For Monday, we expect the Market to decline, and possibly very aggressively and violently depending on associated events.  Initial resistance should be watched though.  If it breaks higher instead we expect the market to accelerate to the secondary targets we have provided in our Market Analysis pages instead.  Planning ahead is critical here.  We have provided specific details in our Market analysis pages so that you can navigate the potential landmines that could be hidden in the road ahead of us.  Follow these indicators, and use them to guide your trading decisions.  This market gives you very little time to think, so you need to prepare, and you need to react quickly.  Our Market Analysis provides these indicators to you so you can do this.  Our automated program takes that to a whole other level too.

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

Good Trading

Stock Traders Daily

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