I am taking full profits on Alcoa after a healthy run from $10.5
The reason why Alcoa will face a steep sell off is due to the increasing cost associated with its business.
Furthermore, Aluminum will be in oversupply for the next 3 years. Coupled with Chinese interest rate hike, Alcoa stands to lose the most.
The technicals for Alcoa shows a ceiling that seems to be impregnable.
I am taking profits here, and will be placing buy orders again at $14.
Alcoa will face a correction if the market corrects. It is safer not to buy this stock at this level.
Short interest in this stock have increased 20%. This adds to my belief that Alcoa is overpriced now.
Photos from my Toronto trip. EATON CENTER
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