10/7/2009 - Market Update and Alcoa (AA)

Market closed flat today as it was waiting for Alcoa's earning announcement, although Dow did fall up to 50 points on a couple occasions out of fear, which presented itself as a bear trap.  Vix also dropped below the 20 EMA.  I have to say that break on the VIX did look very promising a couple days ago - but notice the 20 EMA never crossed the 50.  Alcoa beat nicely, and ended up after hours at $15 even.  I am going to initiate a buy on Alcoa at $15, with a short-term price target for 16.50.  Not much more to say other than stay long, and do not initiate new short positions.  (Unless you're shorting a short ETF).