April 9, 2007

The stocks in this article are poised to move aggressively in the near future as they react to news events or associated news events which may affect the underlying companies.  The analysis offered in this article is based on our proprietary technical analysis, and it does not incorporate the fundamental health of the companies themselves.  This analysis should be used to find entry levels and price targets for any current or future positions in these stocks.

Alcoa (AA)  FREE Trading Report for AA   Alcoa is scheduled to release earnings on April 10 after the market closes.  Consensus earnings estimates is for the company to earn $.10 a share.  In advance of this earnings release Stock Traders Daily has issued trading recommendations on Alcoa so that traders and investors can understand where the stock is headed on a technical basis.  More often than not, the charts tell us where the stocks are likely to go after earnings are released.  Alcoa has recently come close to a level of longer-term resistance, but the stock failed to officially test longer-term resistance the last time it made an attempt.  Now the stock appears poised to retest longer-term resistance.  We have identified longer-term resistance as longer-term parameter #3 in our real-time trading report for Alcoa.  Make sure that you review longer-term parameter #3 first when you read our report, because that will tell you what to expect from the stock.  Once longer-term resistance is tested, we expect the stock to turn down again and we expect a decline all the way to longer-term support, which is identified as longer-term parameter #1 in that same report.  From current levels the outside looks limited.  Find details here:  FREE Trading Report for AA

Google (GOOG) FREE Trading   Report for GOOG.  Barron's made comments this weekend suggesting that Google was having trouble integrating new businesses into its strategic model.  So far, they say, many of the ventures have been flops.  The question is, is that going to hurt Google over time?  In an effort to satisfy some concerns that traders and investors might have about Google, we have taken the time to prepare an evaluation of the stock for any would-be traders.  From our analysis Google appears to be a much better vehicle for active traders than it is for longer-term investors, at least right now.  Google still appears to be floundering within a longer-term trading channel, so the best way to look at the stock is to approach it with either a swing trading or near-term trading objective.  In particular, pay very close attention to our daytrading and swing trading plans, which are provided in our report.  The most important parameter that had recently been tested is midterm parameter #3.  If you are interested in trading Google use this as your inflection point; if the stock is above this level, use our long plan, but if it move below, consider it short instead.  We have provided specific details in the report and they are available to you right now:  FREE Trading   Report for GOOG.

Kroger (KR) FREE Trading   Report for KR.    KR may be the next private equity target, that according to the Wall Street Journal.  The CEO of Kroger claims that the company is not pursuing a leveraged buyout, and in line with his responsibilities as an executive, he claimed that the company is only interested in pursuing its longer-term strategic plans.  However, CEOs rarely disclose the pursuit of strategic business moves prior to them taking place.  In an effort to see if the recent trading patterns of the stock are telling us anything about this probability, we turn to the charts.  Taking the recent CEO comments with a grain of salt, Kroger has recently broken above longer-term resistance.  That, when it happened, was a very bullish sign.  The stock is now above longer-term resistance, and it appears poised to increase aggressively so long as it remains above this level.  We have identified longer-term resistance, which is now converted into a level of support, as longer-term parameter #3 in our real time trading report for KR.  So long as a Kroger remains above this converted longer-term support level we expect the stock to trend higher.  However, if the stock breaks back below this level then the stock is likely to decline significantly instead.  This parameter should be used as your inflection point if you are interested in trading Kroger on this news.  Details are available in our report:  FREE Trading   Report for KR.

Dow Chemical Company  (DOW) FREE Trading   Report for DOW.   Dow Chemical seems to be in play, at least according to foreign newspapers.  This time, the buy price is reported to be $50 billion.  That's roughly a 16% premium to  the current value of the stock.  Now, the lingering question is, how reliable was this report?  The same paper reported a potential buyout of Dow Chemical, at $60 billion not so long ago.  Maybe someone indeed is interested in the company, but only time will tell. In the meantime, let's look at the charts of Dow Chemical to see if there are any hints of a potential buyout.  In mid March the stock broke above longer term resistance and thus far the stock has held above this converted support level.  Remember whenever resistance levels are broken they are converted into support levels.  We have identified this converted longer term support level as longer-term parameter #3 in our real-time trading report for Dow Chemical.  So long as the stock remains above longer-term parameter #3 we expect the stock to continue to move up.  However, if the stock breaks back below longer-term parameter #3 instead, the stock is likely to decline significantly and a test of longer term parameter #1 is likely instead.  Pay very close attention to converted support.  It will be the determining factor in the direction of the stock going forward.  We have provided details here:  FREE Trading   Report for DOW.