Due to the fiscal situation in Europe, global markets are uncertain. Investors are selling their shares, collecting the profit from the rally.
At this point, charts are not going to help much. Though the bull case is now very weak.
All stocks are correlated to the Dow Index, thus despite how good the stock can be, if the DOW drops, there is bearish pressure on that stock. This is because portfolio manager will reweigh their portfolio as other stocks (in the DOW) have better value than that stock.
The Dow Index looks like it could go towards 9600. This depends on this week’s trading. If stocks rebound tomorrow, then the correction has ended.
Stocks that are good play tomorrow.
Alcoa Inc. AA Buy to cover at $12.85 BUY at $12.8
Bank Of America BAC Average in BUY at $14.2
That’s it.
Alcoa Inc may be testing its 200SMA at $12.80 tomorrow. It is thus the best play if the stock moves down there, it is a buy.
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