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.
1 comment:
Although AA is in my portfolio, much like you I also would consider looking at C (also a holding of mine). C much like Alcoa has been languishing versus its peers such BAC and WFC, consolidating at the 3.30-3.40 range and is finally ready to start moving. I think AA will do the same when the big boys will have accumulated enough of it.
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