The Red Roadmaster’s US Market Re-cap + Stock Talk ™

The Red Roadmaster’s US Market Re-cap + Stock Talk ™            

January 27 2010                                                                      
Date Line: Hong Kong (SAR) China       

Red’s Bull Alert: US Stocks rallied and faded closing a bit down on the day Tuesday.

Re-cap of the US Stock Market Action for the week ending 26 January 2010
US Stocks opened lower on concerns about a Chinese government clampdown on bank lending. Banking sources said China's central bank told some banks to increase their reserve ratios to curb excessive lending.

The DJIA lost 2.79 pts, or 0.03%, to close at 10,194.07, the S&P 500 declined 4.62 pts, or 0.42%, to close at 1,092.16, and the NASDAQ tallied up a  minus 7.07 pts, or 0.32 %, to end the session at 2,203.73.

After the lower open, stocks rose on data showing consumer confidence rose for a 3rd straight month in January to its highest level since September 2008, easing concerns about individual spending.

Advancing Sectors: Utilities (+0.4%), Consumer Discretionary (+0.1%)
Declining Sectors: Financial (-1.7%), Telecom (-1.2%), Materials (-1.1%), Energy (-0.5%), Health Care (-0.4%), Industrials (-0.1%)

Unchanged: Consumer Staples, Tech

Volume and Breadth: Trade was light on the NYSE, with about 1.12B/shrs changing hands, below last year's estimated daily average of 2.18B/shrs and on the NASDAQ, about 2.4B/shrs traded, above last year's daily average of 1.63B/shrs. Decliners outnumbered advancers on the NYSE by 5 to 3, and decliners outnumbered advancers on the NASDAQ by about 2 to 1.

Stocks to Watch Today

Alcoa, Inc. (AA), Berkshire Hathaway Inc (BRK.A), Berkshire Hathaway Inc (BRK.B), Zions Bankcoporartion (ZION).

Alcoa Inc.

January 27, 2010                .
Paul A. Ebeling, Jnr. Analyst

Today let’s look at Alcoa, Inc. (AA), one of the world’s top producers of aluminum, from a Technical POV. The overall indications, after Tuesday’s (January 26, 2010) market action, are Neutral: in the near term Neutral, mid-term Neutral, and long term Bullish. The recent Candle Stick analysis: Neutral

**Chart by: http://www.stockta.c...
Latest News and Opinion: Shares of aluminum maker Alcoa bounce back after dipping 20 % in January
http://finance.yahoo...
Wednesday’s Market Action   Close 13.54               +.15                 Volume 43,898,700/shrs

There are two Gaps open up between September 3, and December 10, 2009 at 11.65/13.19, the near term resistance is 13.75, support at 13.14 and the 50 day (EMA) exponential moving average is 14.75.

This is Alcoa, Inc. (AA): Alcoa is among the world's top producers of alumina (aluminum's principal ingredient, processed from bauxite) and aluminum. Its vertically integrated operations include bauxite mining, alumina refining, and aluminum smelting; primary products include alumina and its chemicals, automotive components, and sheet aluminum for beverage cans. The company's non-aluminum products include fiber-optic cables. Major markets include the aerospace, automotive, and construction industries. In 2007 Alcoa offered to buy what was then the world's #3 aluminum producer, Alcan, for US$33B but was trumped by Rio Tinto's US$40B offer. The next year it sold its packaging business to the Rank Group.

The Competitive Landscape

Demand comes largely from the manufacturers of durable goods like motor vehicles, machinery, containers, and construction steel. The profitability of individual companies depends largely on efficient operations, because most products are commodities sold based on price. Big companies have large economies of scale in production. Accordingly, most producers of secondary products buy raw metal from the large producers. Small companies can compete by operating efficient local mini-mills or producing specialty products. The industry is highly automated: average annual revenue per worker is close to US$300,000.

Alcoa, Inc (HQ)

Chairman Alain J. P. Belda

390 Park Ave.
New York, NY 10022-4608
United States  
Phone: 212-836-2600
Fax: 212-836-2815

http://www.alcoa.com
Alcoa Subsidiaries
Alcoa Alunimio S.A.
Alcoa Home Exteriors, Inc.
Kawneer Company, Inc.

Berkshire Hathaway Inc. (BRK.A) Up-date 6

Last Look: May 8, 2009

January 26, 2010                   
Paul A. Ebeling, Jnr. Analyst

Today, let’s look at Berkshire Hathaway Inc (BRK.A), the company home of the world’s now 2nd richest man, from a Technical POV. The overall analysis after