March 7, 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 based on the correlating parameters offered in the Market Analysis pages associated with this summary.

Friday:  Expect the market to begin the day with a bias to decline as it opens on Friday and expect a test of initial support soon thereafter.  From there the mid term converging pattern which we have identified in our Market analysis pages should take over.  This downward sloping converging channel tells us that the market should oscillate lower within a downward sloping channel after support is tested.  However, and more importantly, these same charts tell us to expect very aggressive moves once either the support line of this converging channel breaks lower, or when the resistance line of this channel breaks higher.  In no uncertain terms, the Market is likely to move much more aggressively on Friday than it has in days past if this converging mid term channel breaks either way.  Direction is up in the air, but it is based on the break, either way.  Until then the slope is down, so more of the same should be expected if the channel remains in tact, but this time the downward oscillation pattern should have a reduced frequency, until/unless the channel breaks.  Review the details of our mid term converging channel and the associated trading plans and analysis in our Market analysis pages now so that you can prepare in advance for what is likely to be a very aggressive trading session.

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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