Each and every single earnings season we see aluminum giant Alcoa batting leadoff, complete with an abysmal on-base percentage and often doing its level best to demoralize its teammates (i.e. other components in the Dow Jones Industrial Average). As you might imagine, Alcoa’s stock has largely been dead money since the 2008 crash, with brief rallies and corrections here and there. But, overall, the stock has flatlined at the $9 handle, to the point where no one much cares what the firm has to say and when it says it.
The eponymous acronym (Alcoa stands for ALuminum Company Of America) may very well have turned investors off to the aluminum space as a whole, instead opting for sexier plays within the global material and industrial complex. But you might be remiss in shunning those other setups during this phase of the rally, where rotation into all things materials is now a colorable thesis.
I am not going to chart Alcoa for you, since it is a mega cap and, even if it is building out a bottoming formation on its daily chart, I still prefer the three aluminum ideas presented below on further strength.
In particular, Kaiser Aluminum might be the Keyser Söze of the group, slyly setting up for a beautiful breakout–above well-defined resistance with a strong volume pattern–while most market players eschew aluminum, consciously or not, altogether, even if the setup was sitting in their office the whole time drinking coffee and staring at the wall.
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And here I am thinking that was my greatest trick.
Damn.
LoL