Tuesday, July 13, 2010

It's all good at Alcoa....or is it?

Well, the market suddenly thinks everything is peachy at Alcoa rallying sharply on the heels of Alcoa's better than expected results - although it's worth noting that by the end of the day and the market had resumed it's silicon-based upward march Alcoa had been left in the dust up just a dime on the day. Alcoa's analyst played one of the old school analyst games and hoping no one would notice. Over the past couple of months, they've slowly lowered their expectations for earnings. When Alcoa manages to surpass these lowered expectations, it's time to pop a bottle of Dom and celebrate the return of the recovery!! Only not everyone is reading from the same script and a number of analysts keep cutting their Alcoa estimates as pricing pressures mount in the aluminum market.

Intel has also provided a further boost to Asian markets tonight. So until further notice it seems as though the machines have determined that if they just keep oscillating the market up and down 6 percent every 3 weeks they can buy up all the luxury yachts being auctioned in Miami by the end of the year.

Cheers.

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