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April 17, 2008
The stocks in today's report:
The stocks included in this report
were selected based on unique circumstances including
recent news, breakouts, earnings or correlated Market analysis.
The summary analysis below were derived from real time
trading reports provided by Stock Traders Daily.
Advanced Micro Devices (AMD)
So, you want to buy AMD? The return from AMD from
near $6 is great right? How many people do you
know that bought a stock in 2002 near $5 only to sell a
few years later with a few hundred percent gain?
AMD could be your baby! All this sounds great, but
with potentially aggressive returns comes equally
aggressive risk. AMD is no different. In
fact, our analysis tells us that the stock is headed
lower. Many of the tech companies in 2002 traded
well under $5, recall, and according to our analysis AMD
is likely to revert that way too. AMD is currently
in the process of declining
from a test of revised longer term resistance.
This resistance level had been revised much lower after
the stock has pulled back from its July highs.
Normal oscillation patterns tell us to expect the stock
to continue to decline until it tests longer term
support. We have identified resistance as longer
term parameter #3 and support as #1. Therefore,
when you review the report consider a decline from #3 to
#1 as most probable. However, reversals do occur,
and if one happened in AMD a buy signal would come
without a test of support occurring. In order for
this to happen AMD would have to break above longer term
parameter #3, our resistance level. Unless either
longer term parameter #1 is tested, or #3 breaks higher,
expect more weakness in AMD over time:
AMD Report
Citigroup (C) It sure feels
like the right time to buy Citigroup (C), but is it?
Our objective research tells us that
buying C here may be a little
premature. There are two reasons for
this. First, C never actually tested longer term
support levels. We have identified support as
longer term parameter #1 in our report. Further, C
just tested revised longer term down channel resistance
perfectly, and resistance held; we have identified
resistance as longer term parameter #3. Therefore,
if longer term resistance continues to hold we should
expect C to decline all the way to longer term support
levels, and this would be significant. A reversal
catalyst does exist though: if C can break above longer
term parameter #3 instead a bullish signal will stem
from our analysis instead, and we then would be buyers
of C on the heels of that break. Until/unless this
happens, C is headed lower according to our analysis:
C Report
Caterpillar (CAT) Shares of
Caterpillar (CAT) have momentum and Market correlation
on their side. In fact, CAT, in many regards, has
been leading the Market higher in the recent past.
This makes our correlated Market analysis even more
important for this stock. You can find our current
Market analysis as part of our Market Analysis pages, or
simply review our strategic plan to see our 2 month
forecast. With that analysis in mind, CAT has a
major hurdle to cross: the stock is rapidly approaching
a level of longer term resistance, and
unless the stock can break above
resistance, it will pull back. By rule,
we should always expect resistance levels to hold, until
such time as they break that is. If you are
interested in buying CAT because it is a Market leader,
and because you think the Market heads higher, you must
wait and see what happens w/re to longer term
resistance. We have identified this as longer term
parameter #3 in our real time report. If
resistance holds, CAT is going to fall back to longer
term support (#1). That translates into a big
percentage loss if you buy at these levels if you buy
without risk controls in place. That's why we also
have incorporated risk controls into our report.
Whether you believe CAT is a short upon a test of
resistance, or a buy if resistance breaks higher, we
have provided a strategic trading plan for you in our
report. Review it now, and prepare for the
upcoming test of resistance. Hint: Our analysis is
near term bullish.
CAT Report
Good Trading
Stock Traders Daily
http://www.stocktradersdaily.com
1.866.213.2067
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