March 4, 2008

Market Analysis for Tuesday:  Expect the market to begin the day with a bias to increase as it opens on Tuesday.  Initial resistance should be treated as an inflection parameter during Tuesday's session.  The most likely scenario is for initial resistance to break higher.  If it does the market is likely to surge.  In line with this assumption, midterm support has already been tested and thus far it has held.  Since the test that occurred late on Monday, the market has also begun to turn higher already.  Therefore, if initial resistance breaks higher as well the market is poised to accelerate towards midterm resistance levels again.  This of course would be a bullish signal from our analysis.  However, if initial resistance remains in tact instead the market is likely to turn lower and re-test midterm support levels again instead.  This would re-activate the concerns and the risks associated with tests of midterm support.  Remember, if midterm support breaks lower the market is likely to decline aggressively instead.  Current analysis suggests that midterm support will hold, but you should understand where midterm support exists and you must respect it as a level of inflection for swing trades.  In addition, you should respect initial resistance on Tuesday because it could act as confirmation that a higher levels lie immediately ahead too.  We have provided correlated and strategic trading plans to help you navigate the market from this point forward, use these inflection parameters.  These can be found in our market analysis pages right now.  Take the time to review them.

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

http://www.stocktradersdaily.com

1.866.213.2067