July 30, 2007

Wall Street is concerned with the direction of the Stock Market.  Liquidity problems abound and concerns over the future direction of the market seem to be haunting everyone.  To help people understand the future of liquidity levels, the stock market, and the economy, we have provided The Investment Rate.  The Investment Rate is a measure of future liquidity, and it has been able to predict future long-term market cycles perfectly since 1900.  This leading economic and stock market indicator is available to everyone as a member or trial member of Stock Traders Daily.  Click here to have access to this report:  FREE TRIAL

With global liquidity concerns in focus, we have made an evaluation of the stocks in this article.  This evaluation should always be used in conjunction with the Investment Rate.

Home Depot (HD)  FREE Trading Report for HD    Take this opportunity to sell or short HD.  This is based on an analysis of Home Depot's longer term trends as offered in our real-time trading report for Home Depot.  You are able to read our report in conjunction with this analysis by clicking the free report link.  In addition, you can stimulate the trades that we recommend by using our real time trading simulator as well.  Instructions are available in the report too.  Our Home Depot report tells us that the stock, which had been in the process of increasing toward longer-term resistance, failed to test longer-term resistance recently, and instead reversed lower.  As it turned lower the stock broke below an intra-channel level of support.  This break told us that the stock is unlikely to test longer-term resistance, and now a decline back towards longer-term support is more likely.  Since then the stock proceeded to decline, but today's increase has brought the stock back within striking distance of that converted resistance level.  (This former level of intra-channel support, when it was broken, was converted into a level of resistance.)  We have identified this in our real-time trading report as longer-term parameter #2.  So long as this level of converted resistance remains in tact we expect the stock to decline over time to longer-term parameter #1.  Make sure that you review longer-term parameter #2 first when you review our report, because our analysis is based on this level of inflection:  FREE Trading Report for HD or FREE TRIAL

S&P Depository Receipts (SPY) FREE Trading   Report for SPY.    The The bounce in the S&P Depository Receipts (SPY) seems to represent a shorting opportunity.  The S&P depository receipts tested longer-term resistance perfectly, recently.  Longer-term resistance is marked as longer-term parameter #3 in our real-time trading report for SPY.  When longer-term levels of resistance are tested we expect the stock to decline to longer-term levels of support.  Therefore, we expect SPY to decline to longer-term parameter #1, which represents support in our longer-term analysis.  In addition, the bounce that has occurred today has brought the stock back to within striking distance of a converted level of intra-channel longer-term resistance again.  This should be used as a short signal.  We have identified this as longer-term parameter #2, and it should be considered a more important level of inflection.  So long as the stock remains below longer-term parameter #2, SPY is a short with a downside target of longer-term parameter #1 (if not more).  Make sure that you review this parameter first when you evaluate our report, because it is the basis of our analysis.  In addition, when you review the trading plans, you will be able to apply the trading plans in a simulator to evaluate the effectiveness of our suggestions.  You can also apply your own analysis in the simulator if you want to to compare your own analysis with ours.  Details are available in the report:  FREE Trading   Report for SPY  or FREE TRIAL

Sun Microsystems (SUNW) FREE Trading   Report for SUNW.  Sun Microsystems (SUNW) has recently broken below longer-term support.  If the stock remains under this level momentum declines are likely and the stock could lose considerable value.  Consider longer-term support as a level of important inflection.  We have identified this as longer-term parameter #1 in our real-time trading report for SUNW.  Again, this is a very important time.  If the stock remains below longer-term parameter #1 it will decline considerably from current levels.  This according to the analysis as offered in our report.  Use the information in the report to help guide your trading decisions.  In addition, if you'd like to, you can simulate the recommendation that we offer in our report in a real-time trading simulator to evaluate the effectiveness of our ideas.  You can also compare your own ideas in the same format.  Details are available in the report:  FREE Trading   Report for SUNW  or FREE TRIAL

Energy Select Spyder (XLE) FREE Trading   Report for XLE  The Energy Select SpYders seem to have considerable room to decline from current levels.  Recently longer-term resistance was tested.  We have identified this as longer-term parameter #3 in our real-time trading report for XLE.  After levels of longer-term resistance are tested, we expect the stock to decline to longer-term support again.  In this case, we have identified support as longer-term parameter #1.  You can review this parameter in the same report.  As the stock declines from resistance we first expect a test of intra-channel support, and then we expect it to bounce slightly.  This has been defined as longer-term parameter #2.  To summarize, the stock is in the process of declining towards longer-term parameter #1 but it is likely to bounce after it tests longer-term parameter #2.  If you are currently short XLE, you should use longer-term parameter #2 as your initial target.  Not until longer-term parameter #2 breaks lower as well will the stock proceed to decline to longer-term parameter #1.  Therefore, longer-term parameter #2 could be used as an effective short covering signal.  You may even get a solid bounce from that level, so it could be used as a temporary buy signal too.  However, because resistance was tested and because support should be tested next, the stock should eventually continue to decline to longer-term parameter #1 before it stabilizes.  Not until longer term support is tested should XLE he be purchased for longer-term investments again.  When longer term parameter #1 is tested, that test could also be determined as a signal to buy energy again, but not until then.  We have offered strategic trading plans in our real-time trading report for XLE which should help you navigate these trades.  Take the time to evaluate these plans and compare them with your own.  We have also offered a real-time trading simulator in which you can simulated trades according to our ideas or according to your own ideas to gauge the effectiveness of the plans.  Details are available in the report:  FREE Trading   Report for XLE  or FREE TRIAL