April 5, 2022, 9:30 pm EDT
2022 Actual Trade: AA +31% Profits
When the stock markets are in red color (DJIA -0,8%, S&P500 -1.2%, Nasdaq -1.2%), it could the time for us to take profits from our portfolio.
Today we have our old friend Alcoa Corp (AA) to be displayed. It is about less than 2 months holding for the +31% profits as shown.
As we presented in our stock pick article, 2021/12/14 Stock Picks: AA, AA is always in our mind when looking for a commodity stock in the material sector. AA is reliable and predictable in terms of its trading pattern. Being a giant leader in the aluminum field, AA goes along well with the economic cycle. As inflation became out of control in late 2021, we were looking for a material stock that AA draw our attention from its pattern.
As we can see AA was out of the flat base on 12/18/2021, it could be an entry point. However, we did not catch AA at that time. However, AA is still on our radar screen for the next 6-7 weeks of its first base.
After February 2, 2022, AA offers another entry point after its first consolidation. Thus, we got in on 02/08 when AA began its rally. The timing of the entry point is correct. There was a strong uptrend in February. But, we have to hang in there for the rough March.
The key to our success is because AA never drops below our entry point. Thus, we were looking for an inflation threat for higher prices of aluminum. Another big price came from Russia’s invasion on 02/24/2022 where the demand for materials like fighting jets was stronger in the future. We do believe that AA could run higher in the future. But, we are ready to take profits and wait for the next opportunities.
We invested and made profits on AA for the third consecutive year:
Maybe we will do it again with AA.