Alcoa Corporation (AA, NYSE) Focus List (12/22/23)

• Alcoa is an American based global aluminum producer. 

• Aluminum's demand is spread across the economy, most heavily focused in Transportation and Construction. 

• The Base metals sector has gone sideways to down over the last 2 years, depending on the metal. Funudamentally, there is immense value in some of these names and when liquidity comes back to them I expect significant moves to the upside.

• The Base Metals ETF (XME, NYSE) which includes Alcoa looks like it might be ready to turn higher. 

• Alcoa is a potential turnaround chart. AA has turned the 20, 50 and 65 Day Trends upward, but is still below a declining 200 Day Trend. 

• In addition to the technicals, it also helps to have a view on what the Institute for Supply Management, manufacturing Purchasing Manager's Index (PMI) is going to do over the next 18-24 months. The future is unknowable but the PMI is currently low and showing the potential for re-acceleration. I expect PMI to do well over the next two years but I have less conviction on when that uptrend begins.

• Our Chart of the Day is intended to be a standalone technical chart. 

• We use them to highlight open positions, stocks on our watch list, or indicators that we believe are important, or just interesting at the time. 

• It is not a directional market call. 

• Feel free to share them with others who may be interested.