BANK of America Corp. Buy more at $17.3. $BAC

That line is at $17.3. I will be adding more Bank of America Corp stocks at $17.3

This stock will easily trade at its normalized level by 2011. That is about $30.

Fortunately, Alcoa Inc is still trading in the Bullish Pennant zone. Chart update. $AA

The breakout is still a possibility.

Fear of JOB recovering. DOW retreated today, but it is showing signs that the BULLS are still in charge. $AA, $BAC, $STD, $X

ADP report today was a total failure. Instead of positive growth, the report showed a 20k job loss in the private sector.

Futures plummeted during the Pre-Market session. However, when the market opened, the BULLS took charge and started trading the DOW upwards. However, more bad news were released. Our Chicago PMI was bad, and oil inventory increased. Nevertheless, the BULLS managed to trade the index upwards. 
In the afternoon trading sessions, the BULL traders decided to close their positions, and the DOW started to dip all the way to its opening price. This shows that there were very few new buyers. Today’s action was just a pure TRADERS TRADING mode.

Investors are not selling their shares yet. They are not buying any either. I think they are watching tomorrow’s unemployment’s claims to have a hint on what the JOB market looks like.

Tomorrow, investors want to see unemployment claims drop to 430k.

Dow is still not in a corrective mode. This is still a bull rally. Forget MARC FABER or the others shorters. They are already in trouble. I am very bullish about this market.

I am long Alcoa, BAC, X and Banco Santander.

United States Steel pull back entry. $X

I have raised my target for United States Steel to $72.

I am looking at $61.50 to add on more United States Steel stock.

Iron Ore prices have increased significantly. The trend for steel companies is very bullish.

Alcoa Inc. Bullish chart update. $AA

The bullish pennant formation is not broken yet. A breakout is bound to happen very soon.

Banco Santander central hispano sa, pullback buying opportunity. $STD

Today, Banco Santander shares tumbled as Spain announced its first bailout of one of its local bank. This shows that the housing market is still weak in Spain.

February, Spanish banks had to lower their housing loans assets by 20% due to the weak housing market. Spain unemployment continues to worsen as the country is expected to contract by almost 1%.

However, Banco Santander has been oversold. Santander’s Spanish operations amount to about 30% of the company’s revenue. The company operates the 3rd largest bank in the UK, and it is one of the largest diversified banks in the world. 30% of its operation is based in Brazil and Latin America, another 30% in UK and the rest of Europe, and the remaining 10% is spread across the US and Asia.

This bank is fully diversified. It is enjoying the huge growth rates in the emerging markets. The recent Spanish news is a good chance to enter STD at a cheaper price.

This is the daily chart. STD has gone up to $17 and now it is at $13.38. I have a mid term price target at $15.60 and a long term price target of $20.

The short term trading target is a mini break out to $14.10.

Bank Of America Corp monthly CHART very bullish. $BAC

Let’s take a look at Bank Of America Corp monthly chart.

The stock has been ranging from $14 to $19 for a good 6 months. It is time for it to rise higher than this range now.

Look at BAC monthly chart, we can see a nice bullish trend.

My Pre-Earnings Target is still at $19.2

Many SHORTS are screaming to short this market as I guess they are stuck with their poor negative short position. Expect a SHORT SQUEEZE soon.

Alcoa Inc Bullish continuation. $AA chart update

Nothing much about Alcoa Inc.

Aluminum price is soaring again to close near $1.01/lb. Very positive for Alcoa.

Tomorrow, a breakout might happen.

Banco Santander continues to run. Bullish. $STD

I managed to buy Banco Santander at $13 last week after I initiated it.

Today, it is trading at $13.6. It is still looking very bullish and it is closing on a strong resistance at $13.8

Watch $13.8. If Banco managed to pass through that, this stock will climb to $14.2

Short Alcoa says Brian Kelly. Really? He’s been wrong once, will he be wrong once again?

Brian Kelly is short Alcoa since March 11th. I know Alcoa was trading at $13.70 then. Here’s the link when he first suggested shorting Alcoa.

http://www.cnbc.com/id/35825399/Your_First_Move_For_Friday_March_12th

Again last Friday, Brian Kelly won’t give up. He is suggesting to short Alcoa again as the market is extended.

“I’m also short Goldman as well Alcoa [AA  14.27    0.16  (+1.13%)   ] and ACH [ACH  25.20    0.09  (+0.36%)   ], reveals Brian Kelly. I agree that the market is extended and the next move is lower.”

Come on, Kelly. Is he getting desperate over his short position on Alcoa?

Alcoa usually rallies towards its earnings on April 12th. Furthermore there are many pros that may lift Alcoa price such as the increase in USD index and Aluminum price. Analysts such as Citi, UBS, Argus have recently upgraded Alcoa to buy. I wonder how Kelly is trying to convince people to short Alcoa.

I am long Alcoa Inc. And I foresee a price target of $15.30 next week.

United States Steel bullish continuation. Covered short. LONG. $X.

United States Steel continues to show strong bullish action. The stock looks strong to break that resistance at $65 and shoot upwards to our first target of $68.

Yesterday, I shorted United States Steel at $64. Today, I covered that short position at $63 and go long again.
My net result is buying X at $58 and I will continue to ride this till $68, and the second target is $75.

The fundamental reason for United States Steel to keep rising is due to the increase in Iron Ore price and the apparent shortage of that commodity.

The stimulus plan of $100bln is going to give X a nice lift.

Alcoa Inc bullish Pennant. $15.3 target. $AA

Alcoa Inc continues to struggle. It will break out soon to the break out target of $15.3

Today, there was very strong support at $14.11. Buyers are interested in this stock at $14.11.

I am long Alcoa Inc.

United States Steel. Double top? Should we short it? $X

United States Steel has been on fire lately. The stock climbed up from $44 to $65. I had been burnt by it when I shorted United States Steel at $48, but I quickly covered it at $50. And then I went long early this week at $59, but today, the strong selling pressure, and the sudden drop of the EURO made me sell this company at $64. I also went on to short this stock as the selling pressure was really strong. Furthermore, the entire market was beginning to drop. Investors are using Trichet as an excuse to sell their shares. Some continue to fear that the DOW has risen too much.

Possible double top? I think United Steel will be sold off by investors who bought last month, and buyers will buy at the support of 20SMA line which is currently at $60 or if there is further selling pressure, the 50SMA line would provide more buying pressure at $55, that is the white line. An unlikely scenario is a drop to the 200SMA line which is at $45. This is if traders want to fulfill the double top pattern.

I am short at $64 and I have stop loss at $63.5.

If the market continues to dip tomorrow, there may be a short opportunity for new shorters at $63.15

My first target is $60, and second target is $55.

Finally, I am profiting from a short trade of United States Steel which was the first stock that I recommended shorting.

I am also shorting CLIFF Natural Resources $CLF.

Bank Of America Corp peaked at $18.3. Look for a BUY re-entry.

Investors took advantage of the bad EURO news to take profits. Today’s candle is very bearish. It signals the start of profit taking. Tomorrow being a Friday makes it worst, more investors may be taking profits.

There is support at $17.30. I am looking to re-enter BAC at that price.

Alcoa Inc troubled. Sinking to its support. $AA

Alcoa Inc could not get pass $14.67 today while the market was rallying. There was severe selling pressure above $14.6 as the strengthening of the USD put on bearish pressure on commodities. That is why most commodities stocks dropped.

There are 2 support. $14.01 and $13.90. I am going to buy Alcoa at $14.01 and watch the market. Alcoa Inc is still undervalued. It truly is the dog of the DOW.

Breakout target is still $15.3. I am very patient towards Alcoa Inc. I have sold some at $14.7 already, and I will be adding back my position again when Alcoa hits $14.01.

Bullish technicals. The 20SMA is crossing over the 50SMA upwards. A bullish flag pattern has been formed. Earnings for Alcoa Inc is coming really soon, April 12.

Goldman Sachs has a tendency to raise earnings estimates of Alcoa Inc especially now that Aluminum price has gone up much more than expected (95cts compared to 80cts) and USD has strengthened (10% greater) which is good for Alcoa as it has about 40% of its operations overseas.

Watch the EURO zone, it will affect Alcoa Inc greatly.

Sold. United States Steel, Bank Of America Corp. $X and $BAC

I have sold shares of BAC at $18.2 and United States Steel at $64.

Shorted CLF too at $72.8 as planned earlier.

I will update the charts later when the market closes.

Alcoa Inc remains the Dog of the DOW. Bank Of America Corp has broken out. APPLE Inc is getting interesting. $AA, $BAC, $AAPL

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.

BULLISH on BANK of AMERICA, Alcoa Inc and United States Steel. $BAC, $AA, $X

I will consolidate my stocks update in one post. In future, I will do this unless I am making a new trade recommendation.

First, Bank Of America Corp.

The break out will most probably occur this week. My first target for this breakout is $18. Citigroup cannot be trading at a higher multiple than BAC. Stick to BAC.

Second. Alcoa Inc.
The support at $13.90 was a good buying point. Hope you didn’t miss it when I recommended it on Sunday. The stock did rally after that.
First breakout target of $15.3 in sight.

Third, United States Steel. The stock rallied as expected after my recommendation yesterday in mid day trading. Bought it at $59.80. I have a stop loss at $60.3 and I will ride this to $67 - $68.

We are in a BULL market. Do not listen to the BEARS.

All stocks are trading at super low levels. It is not wise to short any stock at this moment. The next correction should occur when the DOW JONES hit 11400.

Good luck in this BULL market.
Stocks to SHORT:
Cliff Natural Resources, $CLF at $72-$82. (Will revise.)

TRADEDRAGON portfolio FEB 10, 15%

TRADEDRAGON BEST PICKs from FEB 2010 to date

Stock	Price	Current Price	Gains
LVS	14.80	21.3	43%
WYNN	61	76	25%
MGM	10.42	12.5	20%
AA	12.9	14.5	12.4%
BAC	14.5	17	17.2%
MU	9	10.2	13%
AKS	22	23.5	6%
X	59.9	63	5%
PFE	17	17.5	3%

Long on all the stocks shown above.
AVERAGE GAIN on portfolio: 15% in one month.

Current open trades: BAC, AA, AKS, X, PFE

Reason: Bull Market. Short trades did badly. However, a tight stop price minimized the loss on my United Steel short trade.

WORST PICK

Stock	Price	STOP price	Losses
X (Short)	48.5	50	-3%

This is the BULL rally that we have been waiting for. Bank of America is my top pick for this week. $BAC, $M, $C.

The market is rallying. All stocks are trading at a higher multiple now. Look at Macy's stock action.

Macy’s stock chart.

The stock jump upwards today squeezing all shorts positions that were created last week. This means that the market wants to trade at a higher level. Investors are valuing Macy’s at a higher multiple. As of today, it is trading at 12X forward PE.

Macy’s is a retail stock, its high multiple suggests that the market is seeing a true economic recovery and that consumer confidence will ultimately strengthen in March.

This suggests that Bank stocks are severely undervalued. Most large investment banks are trading at low forward PE of only 9X. Bank Of America Corp (8.63X) is trading at a lower forward PE than CITIGROUP (10.7X)! This is insane. BAC has better fundamentals than CITIGROUP, yet it is cheaper.

Bank Of America stock chart looks promising that it will break out to a new high in 6 months! I am seeing $18 very soon, it could happen this week.

Other Financials news. All the republicans in the Senate Banking Committee voted against the financial reform bill. Good news for financial stocks.
Asian financials are soaring.

Casino stocks continue to soar. Las Vegas Sands $LVS made an impressive gain today. 9% up.

United States Steel looking very strong. Time to buy. $X

United States Steel failed to test new bottom today, the stock is seeing renewed buying pressure. This stock is trading at 10.5X forward PE which is lower than its average of 18X.

The stock has retraced and rebounded from its 23.6 FIB line of the latest uptrend. The renewed buying interest suggests that the stock price is still undervalued.
I am taking profits at $68.
I will buy more on any dips.

Materials Stocks are being sold off in Asian Trade. $AA

Alcoa Inc may open with a bad start on Monday. I believe that there will be support at $13.90.

Alcoa Inc has tried so hard to break that $13.90 resistance a few weeks ago. Now that stubborn resistance should become a strong support for Alcoa Inc before its earnings.

Let’s just observe the market on Monday, a slight sell off may occur. For now, let’s just relax and watch WARREN BUFFETT sing and dance.

2 euro-related BANKS to consider. Banco Santander, S.A. and Banco Bilbao Vizcaya Argentaria SA. $STD, $BBVA

I am going to start adding 2 foreign banks into my portfolio. They are ADR stocks traded in the NYSE.

Banco Santander and Banco Bilbao have fallen a great deal from their peak a few months ago due to the debt crisis in the EURO zone. Domestic troubles in Spain have allowed these 2 stocks to dip more than 35% from their high.

These 2 banks have very good fundamentals. They are trading at 9.68X P/E of their latest earnings, while stocks like JPMorgan are trading at 19X.
They are trading at only 7.6X forward P/E. These stocks are trading at a steep discount compared to their peers in the US. They are offering the highest dividend yield of 6.5% compared to US banks that are offering 2% dividend or less.

BUY STD at $13.
BUY BBVA at $13.2

Bank Of America Corp $19.2 Pre-Earnings target.

Bank Of America Corp has a $19.2 break out target which may happen before its earnings next month.

The candle today is supported by the 20 SMA line.
I am a buyer of Bank Of America Corp before its earnings.

Stocks that I have traded.

These are the stocks that I have traded.
My favourite ones that have given me the most profits are AA, BAC, C, WFC, DTG, CAR, MGM, LVS and WYNN.

AA – Alcoa Inc
CENX – Century Aluminum Company
AAPL – Apple Inc
AIG – American Intl Group Inc
AMTD – TD Ameritrade Holding Corp
AXP – American Express Company
BAC – Bank Of America Corp
C – Citigroup Inc
CAR – Avis Budget Group Inc
CHK – Chesapeake Energy Corporation
CAT – Caterpillar Inc
DE – Deere & Company
DD – Ei Dupont
DTG – Dollar Thrifty Automotive Group Inc
HTZ – Hertz Global Hldgs Inc
BCS – Barclays PLC
DELL – Dell Inc
DRYS - DryShips Inc
ETFC – e trade finacial
FAS – Direxion Daily Financial Bull 3X Shares
FAZ – Direxion Daily Financial Bear 3X Shares
FCX – Freeport Mcmoran copper
FRE – Freddie Mac
FNM – Fannie Mae
GS – Goldman Sachs Group Inc
HPQ – Hewlett Packard NYSE HPQ
INTC – Intel Corporation
IBM – International Business Machine
M – Macy’s Inc
SHLD – Sears Holdings Corporation
WMT – Wal-Mart Stores Inc
MU – Micron Technology Inc
NVDA – NVIDIA Corporation
PALM – Palm Inc
JPM – JPMorgan Chase & Co
MGM – MGM Mirage
LVS – Las Vegas Sands Corp
WYNN – Wynn Resorts Limited
MPEL – Melco Crown Entertainment
BYD – Boyd Gaming Corporation
PNC – PNC Financial Services
POT - Potash Corp of Saskatchewan Inc
PFE – Pfizer Inc
RF – Regions Financial Corporation
RIMM – Research in Motion Ltd
SCHW – The Charles Schwab Corp
S – Sprint
MOT – Motorola Inc
SIRI – SIRIUS XM Radio Inc
STI – SunTrust Banks Inc
WFC – Wells Fargo & Company
X – United States Steel Corporation
AKS – AK Steel Holding Corp
CLF – Cliffs Natural Resources Inc
VALE – Vale
UAUA – UAL Corporation
DAL – Delta Air Line Inc
CAL – Continental Airlines
AMR – AMR corporation

Dragon Stock watch. $BAC, $AA, $PFE, $CLF, $X

BUY:
Bank Of America Corp. $17.00
Alcoa Inc $14.1
Pfizer Inc $17

SHORT:
United Steel $65
Cliffs $72

Pfizer Inc looks like a good buy now. $PFE

Pfizer Inc looks like an interesting buy at $17.15.

The 1 year target is $22.40.

Trading target is $18 in the short run.

Chesapeake Energy Corp. Removing it from my portfolio. $CHK

I am not buying $CHK after another downgrade by Lazards.

Chesapeake Energy Corp will only be attractive when it crosses the Bollinger band upwards.

Too many bearish signals.

It crossed below its 200SMA line. There was no support.

And it looks like it is going to form another downtrend wave, and forming a new low.

CHK will be back in the radar below $22 or a cross above the middle bollinger band.

Bank Of America Corp did not break out. Buy more at $17

Bank Of America Corp has formed a powerful pre breakout pattern. However, it failed to breakout today as the unemployment claims was not low enough.

However, the extremely positive Philly index shows that there is room for BAC shares to rise.

JUNE target is still $20.8.

Buying more at $17.

Target 1: $18.1

Target 2: $19.5

Target 3: $20.8

Alcoa Inc double top. Buy at retracement. $AA

Alcoa Inc made a double top today, I sold some when the stock started dropping from $14.8. There would most probably be downward pressure tomorrow. I will be placing a buy order at $14.1

The FIB 38.1% retracement is at $14.1, I will buy Alcoa at that price.

The Breakout target is no longer valid. I am raising pre-earnings target to $16

DRAGON Stocks.

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 wait to buy opportunity. $AAPL

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 Breakout Formation. $BAC

Bank Of America Corp is forming a break out pattern. The break out target is $18.1.

Alcoa Inc finally breaks out. $AA

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.

Stocks update. Alcoa Inc, Bank Of America Corp, Apple, General Electric. $AA, $BAC, $AAPL, $GE

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.

*update. Chesapeake downgraded. $CHK downgraded. Look for a lower entry.

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.

New Pick. CHESAPEAKE Energy Corp. $CHK. BUY

This energy company is in the spotlight as Crude Oil keeps going up on speculation that demand is picking up.

Chesapeake has an average target of $34.

Based on the current trading pattern, Chesapeake seems to be a good rebound play. Watch $25.50. Any break of the middle Bollinger band is a good entry for Chesapeake.

I will be taking first profit at $28, and second one at $30.

Simple energy play. This company has extremely sound fundamentals. It did not lose any money during the sharp downturn.

Market Drivers Next week

Industrial Production
Empire State Index
FED interest rate (extended time)
Philly Manufacturing Index
Unemployment Claims.

It is OPTION WEEK. Expect Wall Street’s manipulation.

Next week, Market will focus on the Industrial Production and Empire State Index in early Monday Morning.

A good reading will allow the DOW to continue its rally. Industrials and Materials will be in the spotlight. Caterpillar may continue its short covering and rally, Alcoa Inc may kick start its short squeeze.

Financials may also continue their bullish rally.

DOW has two options: To form a double top, or to break out.

Why double top? Recovery is weak. Market was overbought. Market players were too optimistic.

Why breakout? Recovery is still taking place. Market is fairly valued and is optimistic of a complete recovery in 2011. Triggers: Industrial Production. Shorts will be squeezed. Stocks are still trading below their average P/E.

The global recovery is taking place. US unemployment claims are reaching normalized levels of 350k. Currently it is at 470k from a high of 650k.

Alcoa Inc the DOG. $AA

What is holding Alcoa INC below $14?

Options? More than 60000 $14 Mar Call contracts are still open.

Aluminum price? It is significantly strong at $0.99/lbs.

Aluminum stock? It is at a 6 month low. 4.51mln tons.

Italy? Market was hoping that Alcoa would shut down the loss making plants in Italy, but they have extended it by another 6 months. Prime Minister of Italy has said that he has a decree for energy issues… Effect is $23mln loss a quarter from their Primary Metals department.

Market Makers? They can only control the price if they have a large inventory. However, the high volume shows that they cannot really control the price for a long time unless they have agreements with large hedge funds for more inventories. Illegal… but its Wall Street.

Investors? They are afraid that Alcoa Inc is going to report another disappointing quarter. Due to whatsoever reason that I cannot think of.

Currency headwinds? US Dollar is strong which is good for Alcoa.

Then what? Beats me. It is the DOG of the DOW.

Chart shows good support at the 13.50 zone. The breakout target is still at $15.3.

The 20sma is going to cross the 50sma.

A breakout is near. This trading range is too tight.

$SPY. S&P 500 breaking out!

This is great, SPY is breaking out. Time for a broad market rally. It should last another week.

On the other hand, the DOW was trading at a very tight range this week.

Time to breakout DOW.

Out of Ideas for this next rally. Stay in Bank Of America $BAC, Alcoa Inc $AA.

I am out of ideas for news stocks to add in this rally.

I am long Bank Of America Corp $BAC and Alcoa Inc $AA.

Alcoa Inc target 1: $15.3

Bank Of America target 1: $18.1

 

Stocks to Watch:
Buy at these levels.
Las Vegas Sands $LVS $17.50
Micron Technology $MU $9.25
WYNN Resorts $WYNN $65
Citigroup $C $3.80
Wells Fargo $WFC $28
San Disk $SNDK $28
Delta Airlines $DAL $12.50

Alcoa Inc can’t wait to breakout. $AA

Alcoa Inc

Alcoa Inc formed a bullish hammer today. Hopefully, Alcoa will breakout tomorrow. The DOW has risen to its high, and ALCOA INC is the DOG of the DOW. There should be rebalancing by portfolio managers soon. They should start covering their short positions in Alcoa Inc and short another stock at its peak instead.

This is bottom fishing. Alcoa is at its bottom now. Fund managers will realize it real soon. The 20SMA is going so close to the 50SMA. A breakout is going to be imminent and really strong this time. It failed 4 times at $13.90.

Alcoa Cant wait to breakout. The videos tell us why.

Bank Of America Corp $BAC and Alcoa Inc $AA update

Bank of america corp has a bullish pattern. The first target level is $18.

Alcoa Inc continues to lag. However, the aluminum story is not over. Morgan Stanley has bought 23million shares of CHALCO shares. Morgan Stanley has a price target for Alcoa Inc at $22. I think they are buying Alcoa shares for their clients too.

DOW update

US inventories unexpectedly went down by 0.2%, this signals to investors that companies are encountering an increase in demand from their customers. This news is positive for INDUSTRIALS, MATERIALS. However, it appears that the broader market is in a stand still today as investors are still unwilling to buy cyclicals. Most probably they prefer to wait for the Unemployment claims data tomorrow for a clearer picture of the economy.

Financials went up very well today. Citigroup led the pack.

Boeing was the best performer today. It went up 3.5% on news that it is going to increase production of its 787 models to 2.5 per month.

This should be positive for Aluminum stocks as well, however, they fell as the general commodities stocks fell.

Alcoa Inc is once again the laggard of the DOW and metals stock.

Its sister, CENX, rose 1.49% today. RIO tinto actually rose in London trade. There is something wrong with Alcoa stock at the moment.

Tomorrow, the all important unemployment claims will determine the trend. Currently, analysts are expecting 456000 claims.

440000 claims will definitely send the DOW skyrocketing by 100 points.

TRADEDRAGON

Bank Of America Corp $BAC. Bullish Continuation

Bank of America Corp is has a green candle again. Even though it has a long upper wick, I believe that the stock is poised to break through its resistance at $17.10.

Bank Of America will start trading at its new trading range in due time.

Buy BAC and trade it at $18.

Micron Technology Inc $MU. Trading Plan.

Look for a buy in entry for Micron Technology MU.

This stock is a Semiconductor play. The stock is trading at only 9.32 forward PE, and it is about to post its earnings really soon.

Note the analyst projections for this stock. UBS has downgraded it to Neutral with a target of $10.50.

Credit Suisse and Wedbush Morgan upgraded it to Outperform with targets of $12 and $13 last year.

This stock has started profiting last quarter due to its high revenue. This is a tech play.

I am not playing this stock yet. I will continue watching it. However, if you are looking to go long MU, this is the trading entry level. It is a strong support.

My target for MU is $14.50. However, I prefer to wait for the earnings at the end of the month to confirm this stock potential. As long as the stock remains under $11 after the earnings, I may enter depending on the results of the earnings.

Cramer said he has given up on Alcoa INC. This is great news!

Finally, Alcoa Inc is not associated with the JINX – Cramer.

Here’s his video. http://www.cnbc.com/id/35782383

Cramer acting like a monkey. He has given up on my most troubled stock ALCOA INC!

My Opinion: Cramer picks sux. People do better doing the opposite of whatever he says.

Buy Alcoa Inc. Confirmed.

Alcoa Inc. $AA The most troubled stock in my portfolio.

Today, I will only review Alcoa Inc. $AA. It is indeed the most troubled stock in my portfolio. All my other stocks have achieved their targets except for this one. I have cashed out of $AAPL, $LVS, $WYNN, $DIS. And I am holding $BAC, $MSFT and $AA now.

All of these stocks have risen more than 20% each except Disney, Microsoft, Apple and of course, ALCOA INC, the worst performer.

Nevertheless, Alcoa Inc remains in my Dragon picks as this stock has all the fundamentals of a solid company.

Alcoa Inc is a pure Aluminum play. Its price has correlated with the commodity price action for a long time. Currently, the commodity price has gone up, while the stock is still trading at a tight range ready to pop upwards anytime.

All of Alcoa Inc friends like CENX and ACH has risen a great deal. This is why I affirm Alcoa inc as a solid pick and I will increase my position in Alcoa Inc at this price.

The recent trading action shows a Hanging man yesterday, however, today a star is formed by means of a doji. The volume today is as high as that of yesterday’s. There is strong selling pressure and also strong buying pressure.

I don’t know who is selling this stock at such a low level. However, I will not yield. I believe that Alcoa is a great company and the Aluminum play is solid.

Most likely, it should hit $15.3 by this month. 80% chance.

Alcoa Inc is my final pick.
Please add a comment if you have a better pick.

DOW indecision.

This is another day of indecision. The DOW made another spinning top today.

The market opened lower today as traders tried to spark a sell off. However, investors are not keen to sell their shares at this level.

In the afternoon trading session, Traders once again shorted the market, and this time they sparked off a sell off. The DOW went negative for a slight moment, and it started climbing again, most probably due to short covering by the traders.

Some Investors have sold their positions today, while others are still clinging on to theirs. Some traders still think that the market is overpriced, and they are hoping for a sell off.

Meanwhile, contrarians are accumulating shares for the next rally. There is definitely a strong buying pressure, as the chart was supposed to be bearish, yet the stocks’ prices rose today. Today spinning top indicates that there is a significant buying activity taking place at 10550, though investors are not keen to buy at 10600.

Tomorrow, Commodities will tell us whether the global recovery is still in play.

Today, Aluminum is the only commodity that rose as its stock levels are decreasing, and cancelled warrants are increasing. This signals a strong demand for this commodity at the current low price.

Tomorrow, we will watch whether Aluminum is able to breakout above $1/lb. This would be interesting for companies like Alcoa Inc and CENX. When Aluminum was trading at $1 in late December, Alcoa Inc rallied to $17. At $17, Alcoa will be trading at 14X forward PE which is what Caterpillar and Dupont are getting now. These companies are correlated with Alcoa Inc.

Citigroup $C made an impressive move today. The stock rose 7.3% on news that the US is able to start selling their shares. This news excited hedgefunds which believe that Citigroup would do well without government’s involvement. I would start selling my Citigroup shares at this point. The next sell level is $4.3.

APPLE AAPL hit my target of $225. I have sold off my position in APPLE stock and will be interested in it when it goes back to the $200 level.

Las Vegas Sands Corp seems to be retracing after hitting its peak at $19.30. I sold off half my holdings at $19.2 and I will be looking for a re entry at $18.

WYNN RESORTS is attractive at $65. It should trade in the new range of $65 - $70.

Wierd stock. Zanett Inc $ZANE

This is an infomercial to spark your greedy minds.

Zanett Inc was about to receive a delisting notice from Nasdaq as its stock has been trading under $1 for too long. The stock price was only $0.30 on March 1.

Surprisingly, ZANE managed to send a PRESS RELEASE saying that the company has some $12mln deals going on.

Instantly on MAR 4, the stock climbed. Today the stock is priced at $3.

Strange.

Should you be looking for this type of stock? No doubt it is good money. 10X gains in a week. That is great. However, what is the chance of getting such a deal?

Why it rose. Manipulation… you bet.

I hate penny stocks, but if you are interested in Penny stocks, this type of stocks always happen.

Look at WAMUQ price today…..

Alcoa Inc, miserable stock. Aluminum update

Here are some facts for you to make your own opinion about Aluminum.

Stock level at 6 month low.

Aluminum price may make a new high, or consolidate at $1.

China has not bought metals since the chinese new year break. This increase in price and demand was solely from the US warehouse. Chicago and Detroit Aluminum stocks have been decreasing steadily everyday.

When the Chinese starts ramping up production again, Aluminum price may hit $1.15.

VS

vs

Observe that only Alcoa Inc has not broken above its FEB 2 resistance.

Alcoa Inc is the only metal stock that is trading in a tight range.

Is there any negative news about this company?

Aluminum price has gone up. What is wrong with ALCOA INC?

Everything that is beneficial for Alcoa Inc has gone up.

USD index has gone up 10%, Aluminum price has gone up 5%. Compared to last quarter, Alcoa Inc will most probably increase their revenue by 5-10%. Their Cost Of Goods sold would most probably decrease by $250mln as the one off Italian Charge would not occur again.

Earnings Estimates by most analysts average at $0.17.

BULLISH estimate is $0.33. (using 95cts as AL price)

Bearish estimate is $0.08. (using 80cts as AL price)

The average Aluminum price this quarter seems to be 95cts.

Make your choice. Alcoa Inc is definitely my top pick despite its misery.

Sectors update. $LVS rallying.

Casino stocks are rallying again today. WYNN has touched its strong resistance level of $70. I am collecting some profits here at $70.

LVS resistance at $19.20 too. I am taking some profit here as well.

Alcoa Inc $AA is still performing badly. I am watching for a breakout of the $13.74 region. Then I will add more position there. Break out target is still $15.30. No revision.

Bank Of America Corp $BAC is looking strong. Financials stocks are about to rally. I will be watching this as well.

The DOW must break its 10700 resistance in order to sustain another year of rally. Hence, TRADERS will be watching this thursday’s unemployment figure very closely. I believe, the break out to new high will happen on Thursday should the unemployment claims be less than 450k.

The S&P 500 is facing a strong resistance as well as traders wonder whether to break it, or form the death formation of a double top.

Today’s bullish action shows that INVESTORS are unwilling to sell at low prices. This price that we are seeing now is low.

Alcoa Inc should be in our radars now. This stock will break out very soon. It is the last stock to rally.

Note that ALUMINUM prices have soared back to $1 region.

Best Sector: CASINO

The Casino sector is doing so well. WYNN, MGM, LVS are trading at their new range. HOLD this sector for awhile and get ready to sell.

MPEL has amazed us with its 9% gains today. It has done this 3 times already. From a low of $3.3 just 4 weeks ago, MPEL is now strong at $4.77.

Watch for bearish indicators. WYNN has a topside resistance of $70. If that is broken, this sector is indeed strong.

LVS has a top side resistance at $19.5

MGM has a top side resistance at $12.2

$AIG. The scariest stock with high volatility.

AIG is an interesting stock. It has been rocking around $25 - $30 on asset sales news. I don’t think this is a happy news. Though it reduces AIG’s debt burden, however, AIG is becoming a smaller and smaller company. It may end up selling all its assets and be left with nothing. No matter what, there are investors who are confident that AIG could rise to $100. For now, it is better to stay away from this stock. It may go to $100. When?

Technically, it has a bearish pattern, the stock has hit its 200SMA, and now it looks like it is going to fall to its 20sma. If you want to consider going long with AIG, there is a possible pull back to $27. Good luck with you AIG investment.

Alcoa Inc $AA Dragged lower by DOW

Alcoa Inc could not rally together with its commodities counterparts. CENX, FCX, X, ACH are rallying while Alcoa Inc is dragged lower by the DOW.

Alcoa actually reached $14 as shorts started to panic. However, the stock is still shorted by some funds as a hedge. This stock has a short percentage of 7%. The highest among all the DOW stocks. Most probably, there will be more short covering by this week.

Anyway, all targets remain the same. The resistance at $13.90 is no longer a strong resistance. The next resistance ahead is $14.4 and $14.8 before the strongest resistance at $15.3.

This is a pure ALUMINUM play. Note that aluminum stock pile at LME is at its 6 months low. This is why Aluminum price has gone up to $1 and it is now stable at 98cts/lb. Morgan Stanley has been using 80cts as its 2010 average price. An upgrade for Alcoa will happen really soon.
Recently, UBS has upped their 2010 aluminum price to $1.15/lb. They are becoming very optimistic about Aluminum which was the major laggard last year. All commodities have risen more than Aluminum.

Demand is picking up as AUTO sales are increasing as compared to last year. Chicago aluminum warehouse has been seeing a low inventory level recently. This has pushed Aluminum premiums up.