Deflation is the new theme in the economy, as trading volume returns to the financial markets after the holidays. What do the professional traders of TraderInsight.com think?

Here’s the list of 7 stocks our professional traders will be watching this week:

Bed Bath & Beyond (BBBY), Family Dollar Stores (FDO), Supervalue (SVU), Constellation Brands (STZ), Acadia Realty Trust (AKR), Boston Properties (BXP), Avalon Bay Communities (AVB)

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Adrian Manz, Stock Day Trader

Monday represents the first "real" trading day of 2009 and it looks as though the week will provide some volatile price action as many companies report earnings and economic announcements will be plentiful. This week’s earnings news promises volatility in retail, as Bed Bath & Beyond (BBBY), Family Dollar Stores (FDO), Supervalue (SVU) and Constellation Brands (STZ) are scheduled to report. Each will almost certainly provide solid trading opportunities, both before and after earnings are reported, with intraday 5-minute and overlapping 25-tick timeframes providing the trading opportunities I will be on the lookout for.

Also on deck early this week, the REITs look ready for a move lower. I will watch Acadia Realty Trust (AKR), Boston Properties (BXP) and Avalon Bay Communities (AVB) for a Switch Hitter reversal move lower on Monday and Tuesday.

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Tom Incorvia, Stock Swing Trader

All three of the broader averages posted strong gains last week, lifting them to levels not seen since November 2008. All but one of the 31 sectors were in the green. The leading sectors were the Metals and Mining, Energy, and Aerospace/Defense.

This week’s focus will definitely be on the release of the December Employment Report. The Street is looking for a loss of 500,000 jobs, which would follow the 533,000 job loss reported in November. The unemployment rate is expected to jump from 6.7% to 7% on any weak employment figures. Also, President-elect Obama will be meeting with congressional leaders from both sides of the isle to discuss economic stimulus plans.

The action in the markets last week was productive from a price action prospective. The question that remains to be answered is will there be any follow-through this week. If volume shows up in harmony with upside probing, that may signify a short- to intermediate-term bottom. Because of anemic volume last week, I will wait to see the reaction from the Street before I test the waters.

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2 Months for the Price of 1

Swing trade along with a hedge fund manager. The regular price of Tom Incorvia's Stock Trading Service is only $99 per month, but when you pay for one month, you'll receive the second month for free. Your membership will continue at the regular price of $99 per month until you cancel. Cancel at any time. This offer for a free month ends, Monday, January 5, 2009.

Join today.
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Art Collins, Index Futures Trader

The recent stock market rally is a result of both a technical oversold condition and a fundamental exuberance about the impending Obama election. Any veteran trader is likely to affirm the phenomenon of "buy the rumor, sell the fact," and I can certainly add my own anecdotal two cents its effectiveness. That implies we should continue to see a market that is resistant to down-side pressure up until the election. We have an opportunity to gage this on Monday as the market is likely to show at least initial weakness over the current Mideast crisis. I'm figuring the close is likely to be higher than the opening, but even if that it proves incorrect, I expect persistent strength for the next two weeks.

The classic resolution of this would be a sharp down-move on inauguration day, January 20. Maybe it won't be quite that perfect, but there are other reasons I'm imagining a monthly high just before the 20th. It's pretty much the January story. Anticipation of a fresh start initially drives the market to uncomfortable heights and then reacts late in last third of the month. On the other hand, this does contradict my seasonal overview that says be short from the 7th through the 21st of any month and then long for the rest of the time. I'm betting on the special nature of January though, as well as the political fundamental setup. For the forthcoming week, I expect higher prices by Friday's close.

Dave Mecklenburg is the Editor-in-Chief of TigerSharkTrading.com.