ALCOA Inc. (AA)

[ogbull]

SELLING PRESSURE IS OFF ~20%

Let's just hope it stays that way. I look back on the last 3 days and realize we just manage to break 10 million shares each day, 50% of normal volume. In fact, we've traded at 50% of normal volume ever since we slid off of $9.48. Thirty million shares for AA in 3 days is not a sell off. Even at noon today, when a few sellers went to lunch, the buy side ran the price up to $9.22 -- the stock wants to run north. When the stupid sellers come back from lunch, they quickly pressed the buyers and run the price back down to $9.12.

I've never seen sellers throw stocks at buyers when volume remained 50% below normal. I've seen many stocks sell off but always with at least a double or triple normal volume.

The point is simply; the drop from about $9.50 to $9.12 was caused by ignorant sellers... or maybe the selling was done by banker-types in a forced sell? The only way the trading makes make sense to me is if it was executed by someone that did not care too much about the selling price. It's mind blowing to watch AA sellers pushing the price down by throwing shares at the buy side.

Let's assume that 50% (15 million) of the shares were sold by legitimate sellers who were disgusted with AA. This leaves 15 million shares sold off by bankers who did not give a rat's ass about the selling prices. Under such a circumstance you get the same picture we have witnessed over the last 3 days.

I think it's plausible.

Anyway, the ignorant selling pressure is slowing and hopefully will end today and AA will close up a few pennies.

I'm gonna take a nap... happy tradings