Alcoa clear break out, EW model called it nicely. [AA]

I hope at least someone has been watching my calls on Alcoa.  Here is the last one which suggested immediate purchase for a 2 year hold.   In fact, I wrote the following:

"For now, the smart money plays the odds that government will continue to print and the world will continue to tolerate it some more.  My 18 month target price for Alcoa is $18.  Yes, I said it, perennial loser Alcoa gets an initial price target of more than double its current price within 18 months.  I should call it the Alcoa 18 in 18 deal. If your mom doesn't know where to park a nice chunk of her retirement, tell her to go for Alcoa and pick up the 1.4% dividend yield.  They will be raising this dividend as the automobile begins consuming a LOT more aluminum starting next year."


Today the breakout was completely confirmed with a massive 9% rise.  That's 9 percent in one day on sleepy little Alcoa!!   That is indeed massive folks and it's just the start.  Don't for a second think that this one has shot its wad.  It's just starting to take off IMVHO.  As always, buy the dips and don't use leverage and you will be just fine.  Keep in mind that this is not all new buyers.  This buying includes a lot of shorts, who have gotten used to crappy performance from Alcoa, having to cover (i.e. buy).

That inclining double bottom was really my main indicator that the herd was beginning to turn on this one.  Please note that I have not been bullish on Alcoa for very long.  It was this chart formation that told me that a bottom was in the cards.  If you turn an inclining double bottom upside down you have a declining double top - Owl Ears as I like to call them.  It's very bearish.  Likewise, reverse Owl Ears is bullish.