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April 8, 2008
The stocks in today's report:
The stocks included in this report
were selected based on unique circumstances including
recent news, breakouts, or correlated Market analysis.
The summary analysis below were derived from real time
trading reports provided by Stock Traders Daily.
Washington Mutual (WM)
Before reading this report the first thing that you need
to ask yourself is: Are you a believer in Washington
Mutual? Well, are ya pal? Our objective
analysis tells us that longer term support for WM has
dropped below zero. This is rare, and it only
happens when stocks are severely broken technically.
WM, therefore, is severely broken on a longer term
technical basis and there are substantial risks
associated with the stock at current levels as well.
This, however, assumes that WM remains under longer term
parameter #3 as offered in or real time report.
Longer term parameter #3 represents a resistance level
which, if broken, will present bullish signs for the
stock going forward. Betting on a break above this
inflection level might be asking too much, but there
still may be a trading
opportunity in the stock. Refer to the
mid term parameters in our report and specifically to
mid term parameter #2. If this support parameter
holds, consider WM as a long with an upside target of
longer term parameter #3. Remember to use risk
controls though. We have included these details in
a trading plan, with a calculated stop loss to help you
navigate the stock from here:
WM Report
Advanced Micro Devices (AMD)
AMD still has room to fall according to our
analysis. Although past down cycles in AMD have
presented excellent buying opportunities for patient
investors, this cycle may not turn out that way quite
yet. We are expecting AMD to fall all the way to
longer term support levels, according to the trading
report we have prepared. If the stock remains
under longer term revised resistance levels, which were
tested perfectly recently, the
stock will continue to decline considerably.
Although the net share price changes might seem
comparatively small, the percentage changes in the stock
price will be huge, if this happens. The low share
price and added volatility make risk controls in AMD
difficult, and therefore AMD may be a better avoid than
a trade, but if you are interested in trading the stock
we have provided plans for you which incorporate those
risk controls as well:
AMD Report
Alcoa (AA) Officially, AA
has not yet tested longer term resistance as offered in
our report, but it has come close.
This presents a quandary:
if AA fails to test resistance officially, which is
reasonable, the stock will fall back to longer term
support levels again, and this means substantial
declines would lie ahead. However, an equal
probability at this time is a reversal back to
resistance levels. The catalyst, and inflection
parameter for AA from here, as a result, will be longer
term parameter #2. If this parameter holds we
should expect AA to trend higher and test longer term
parameter #3, which is defined as resistance in our
report. However, if AA breaks below longer term
parameter #2 consider it a short signal and expect a
test of longer term parameter #1, support, instead.
Everything considered, AA is a 'neutral' stock until a
trading signal is presented based on the indicators
above:
AA Report
Good Trading
Stock Traders Daily
http://www.stocktradersdaily.com
1.866.213.2067
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