Gump Comments On The Market
Aluminum giant Alcoa
(
AA |
Quote |
Chart |
News |
PowerRating) is forming a Lizard tail after rebounding
off the 20-day moving average and an area near a 50% retracement of the Jan. 12 to March 8 leg higher. While not usually considered a glamour play by any
stretch of the imagination, one cannot ignore the fact that AA is up more than
40% since the beginning of December. Boring is as boring does.
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Defensive issues may not get a great deal of press, but when
stocks go up while the market is going sideways or down, they are talking. Go
with what’s going up if you are going to trade the long side, and stick with the
strongest performing stocks at the present time. Your account doesn’t care if
your position is in equities like Alcoa or the highest-flying IPO. Profits is as
profits does.
Until tomorrow,
Duke