I am still long AA, BAC, X.
Alcoa Inc. Pullback is a buying opportunity. Alcoa Inc is still the worst performer of the DOW-30 index. A mid-day buy recommendation by ARGUS did not help to lift Alcoa today. While other commodities stocks such as United States Steel and Cliffs Natural Resources continued to rally, Alcoa Inc was sold off or shorted.
Today trading range was quite tight. There are still many buyers, albeit more sellers. Nevertheless, the stock is still at the upper Bollinger Band and there is still room for a rally to the breakout target of $15.30
Bank Of America Corp broke out today. The stock is on its way to $18.
APPLE stock is very overpriced, but investors are still willing to pay a high premium to own this stock. The launch of the new IPAD in early APRIL is an impetus to buy this stock now. Investors or speculators are thinking that the IPAD sale is going to increase APPLE profits. However, I think that the IPAD sale would lower their IPOD touch and MacBook sales. Thus, I am not a fan of APPLE stock now for many reasons – overpriced, little growth, hype stock, low rewards/high risk (MAX of $250 8% gains, but high risk). For a tech play, I would choose INTEL over APPLE.
Alcoa Inc will be in the spotlight tomorrow. The unemployment claims would certainly affect the market tomorrow. Traders are watching for a modest decline to 450k in order to fuel this bullish rally.
Alcoa Inc and Bank of America Corp should enjoy a pre-earnings rally. Alcoa Inc pre-earnings target is $16 while BAC’s one is $19. However, it does depends on the fundamentals of the market which is now unstable as traders are speculating that the NFP report is going to show a gain of 100k to 350k jobs!
If NFP report does show such large gains in jobs, then I believe the market will rally to 11400 by June. It seems like this year’s low was in February and we are now in another year of bull rally.
No comments:
Post a Comment