Goldman upgrades Alcoa to BUY [AA]

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Today it is reported that Goldman upgraded Alcoa Aluminum to a "buy".  This comes as zero surprise to me but it is still useful confirmation of my existing charting model for Alcoa.  To summarize the key posts I've made on Alcoa:

• Original bottoming call/bullish call on Alcoa 
• Details as it broke out
• Wave 1 peaked and now ready for an a-b-c pullback

Today's post is intended to convey that the pull back is most likely over and that a big move per unit time is very, very likely right ahead.  Goldman Sachs has just made a buy call on the shares and of course I could not agree more.  Aluminum is starting to get used in vehicle bodies.  Ford announced plans for it and Honda is now talking about steel-aluminum hybrids.  But the big thing coming will be electric cars.   Tesla is using aluminum frames in the model S.  Electric cars are in their infancy.  Once they become mainstream, Alcoa will find itself needing to expand capacity (and profits) due to demand.  This is not a fad.  This is not going away.  This is history unfolding right before our eyes.  Alcoa is such an obvious play.

Watch the action once this breaks $10.  I stand by my 18 in 18 prediction and I expect a massive 3rd wave up coming very soon now.  The other analysts will see the Goldman call, do their homework, and begin to pile on soon.

Note: it is possible (although not likely at this point) that this gap is really only the C of B wave of the expected a-b-c pullback from the $10 level.  If the broader markets pull back everything could get dragged down.  In that case, a fall to the 61.8% fib could be the final resting point before the real 3rd wave up starts.  A breakout above the wave 1 shown below would indicate that the real 3rd wave is in progress.  A break down below what I marked as wave 2 below would indicate that a pullback to the 61.8% fib is in the cards.  But really, does it matter if you are buying and holding for at least 18 months?  Anything below $10 is clearly a gift price.  Catching the exact bottom is never the goal of good traders.  They seek to catch the fat part of the move knowing that another trolly comes along every 10 minutes.