ALCOA

Alcoa kicked off earnings season with mixed results. The stock traded up in after hours, but not by much. Watch to see how it trades tomorrow. It should gap up at the open. See if it starts to sell off. If it gaps up and sells off on higher than normal volume, look to buy puts at the close and set the stop above the intra day high. More employment news comes out tomorrow and the forecast is that it doesn't look great. The news itself won't matter that much to us. We want to see how the market reacts to the news. My guess is that it should sell off on the news since the market is so overbought. However, the Shanghai (China) index is currently up over 3.5% at the time of this blog posting which could have an affect on how the U.S. markets trade tomorrow. Remember, it is difficult to pick the exact top of any market. We just know that we are near a top. Just look at how fast gold, silver, and oil sold off today.