Afternoon Delight 01/09/12

Big night for those in AL and LA and for the fans of college football. I hope you like low scoring defensive struggles. The total is 40 points, STB likes the under. As for a winner, you can throw a hat over them. Should be a great game with the SEC winning its 6th consecutive national championship.

Sorry bout that, after that most exhilarating day in the markets I got sidetracked. What is there to report on from the markets? Well the Merkozy meeting was a big zero. AA earnings (and the markets reaction to them) were a dud. LIZ and another downgrade brought nothing. Italy yields over 7% and consumer borrowing spiking were non events also. Even PIMCO's Elmer Fudd El-Erian: QE3 Won't Produce The Outcomes We Want did not budge the markets. Looks like the central planners have the sheeple right where they want them, on the sidelines unable to sway the markets in either direction.

Alcoa (AA) Technical Look Before Earnings

You can go read the news and the noise if you like, I just report the technicals and what they say. Remember that fundamentals are dead. They are big fat FASB, unregulated, convoluted and corrupt figures (IMHO of course).

The technical take for AA is quite bright actually looking at the daily and weekly charts below. This take is in contrast to the overall markets right now as the broader indexes are set up for near term failure. Keep this in mind if AA should have good news after the bell and you chase it. 

Daily AA - Quite the double bottom with strong buy divergences. No real patterns exist here. Price just simply violently fell into support near 9.60. The range (9-17) since the '08 fall and recovery is clear to see.