THE US drugstore chain Walgreen reports its first quarter 2011 earnings on Wednesday with the stock trying to break through the $38 resistance level to new 12-month highs. Walgreen has surged on strong volume over the last three weeks and it does look like only a matter of time before it breaks higher. There is large call-option open interest on the $40 strike level, so that should be our target if it breaks through $38. Spread Co offers a spread on Walgreen of $37.49-$37.56.

The aluminium producer, Alcoa Inc, is at an 8 month high and has been trending up since the start of December. With investor confidence in the US on the up and Alcoa’s fourth quarter earnings per share up $0.03 to $0.18, there could be room for further movement higher. Capital CFDs quotes $14.56–$14.59.

It looks like the word might have been on the street Friday regarding Ladbrokes’ reported interest in bidding for 888 Holdings, as the shares jumped 12 per cent on heavy volume. This of course was followed by confirmation yesterday of bid talks by Ladbrokes and a further 20 per cent jump to seven month highs of 58p. Although figures of 70p a share have been mentioned, the shares did stall at an old support/resistance line and the 200 day moving average, which may hold it for now. A break of this level though should see it close the gap to 65p left on 28 May. Spread Co offers a spread on 888 Holdings of 57.96p–58.29p and Ladbrokes of 126.8p–127.5p.