Alcoa breaks out as Bernanke admits tapering not possible. [AA]

I called the bottom for Alcoa in June.   The most recent post in this Alcoa series was just done early this morning, long before the markets opened.  That post contained an important model chart which I have reproduced below.  As you can see, I clearly modeled a massive and imminent break out of the long standing down trending resistance:

Today, in a clear showing of loss of confidence in Bernanke's ability to control future inflation in light of his inability to taper (ever), Alcoa broke out of that trend line as expected and "with gusto". 

This is the biggest single day upward move for Alcoa in years.  It is meaningful.  The market is voting against Bernanke's funny money con here.  The con is that government can print money endlessly without eventually causing inflation and even a so called "currency event".  This move by Alcoa is less about business improvement in Alcoa than it is about loss of confidence in fiat currency and fractional reserve banking.   This break out is clear confirmation that Alcoa is now in a bull market (just as my EW model predicted in my first piece on AA back in late June of this year).

By the way, I didn't just choose to follow AA by accident.  I chose it because it is a plodding commodities producer who nobody is willing to assign a fantasy "tech" or "new reality" PE to.  I chose it because it is more real world than stocks like NFLX, and other high fliers like AAPL who might or might not produce something uber kewl next year.  We all know what AA is going to produce next year.  We know how much they will produce and how much it will cost them.  It is a completely understood business that is fully mature.  That is why I posted 4 times about AA already.  Because I knew it would be a good indicator of CONfidence loss at some point.