Watch:
LONG:
Chesapeake $CHK $24
SHORT:
Cliffs Natural $CLF $72
United Steel $X $65
Unemployment claims report tomorrow is expected to decline to 456k. Any number below 450k will allow the DOW to rally very hard. It has reached 440k last month.
Apple Inc has lost its sense of direction lately. The stock is overpriced as people are willing to pay a heavy premium to own APPLE shares.
If you want to buy more Apple shares, allow AAPL to dip to $216 level and take profits at $236 for a 9% gain.
Watch for a close below he middle Bollinger band to confirm the dip.
Bank Of America Corp is forming a break out pattern. The break out target is $18.1.
Alcoa Inc was on fire today. The stock rose to a high of $14.80 and finally settled at $14.46.
The breakout that we have been waiting for ages has finally arrived. The enormous volume shows the amount of short covering and new investments.
There are 70mln shares shorted as of 15 March. Today’s volume of 79mln shares suggest that there may be at least 20mln more shares that are shorted. There should be more short covering tomorrow.
Positive unemployment claims report tomorrow will help Alcoa Inc rally to $15. Expect broker upgrades very soon as the high volume usually suggest that some brokers have already bought their shares and they will pump the company by issuing upgrades or reiterations.
This week is option expiration week. The stock should be trading near $15.
Long: AA, BAC
Alcoa Inc made a bullish come back today. It is still at the upper range of the Bollinger Band and the chart pattern formed today is very bullish. It closed at its highest of the day and it is the highest close in 6 days. Break out target remains at $15.3. Option week may impede its movement above $14, however, the Thursday Job report may provide a boost if it is below 450,000 claims.
Bank of America Corp has rebounded from a minor correction to its first target of $18.
Bac daily chart shows good bullish strength.
Apple Inc shows support at $220 region, it may continue its rally to $240. I am looking for a SHORT position if it goes to $240, and a Long position if it goes to $200.
General Electric is the best performer of the DOW lately. The stock had an impressive rally. Is it time to take profit? Today, the stock rose on extremely high volume. The candle closed outside of the Bollinger Band, this signals that it is near overbought zone and it is almost time for SHORTERS to take over to bring it back to $16. Look what happened the other time when the candle closed outside the Bollinger Band.
The run up could be attributed to the option expiry event. $17.50 MARCH calls are expiring this Friday.
Casino stocks continues to rise. It is a strong sector now. I am avoiding it now as it has rallied quite a lot and I have taken profits already. I will buy them again when I have studied the new BUY levels for these stocks.
MGM rose 8%, LVS rose 7%.
Watch: Chesapeake for a buy at $24. CLF for a short at $70.
Morgan Stanley downgraded Chesapeake to equal weight, citing support at $22 and resistance at $30.
Look for a lower entry, or a break above the middle bollinger band.
Look for $24.XX for a buy.
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