July 23, 2008

WFR reports earnings after the close today. Our proprietary measurements show that the traders have been aggressive buyers this week and are positioned for bullish news. American Technology recommended buying this morning prior to earnings.

The Wall Street has not caught up to changes happening at WFR — production hitches, higher costs and lower shipments. More than likely, the company’s earning report will be disappointing. Further, it is likely MMEC will lower guidance.

Since the street is aggressively positioned on the bullish side, the negative reaction to earnings is likely to be extreme as trapped bulls try to exit. We recommend additional short positions on up spikes over $ 53.00.… Please click here or the title below to read more.