Why would the PPS of 'AA" Alcoa be going down with all the good news for them..
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Why would the PPS of 'AA" Alcoa be going down with all the good news for them..
News may be good for the company, but good news doesn't pay you. Only the dividend (AA - 12 cents a year) and price action (traders buying and selling) pays.
This is the most common mistake I see among new traders. It's not your fault, you just don't know any other way, yet.
What price did you buy at, and what is your stop plan and/or target price to sell?
No stock will go up forever, eventually people will take some profits. Pullbacks are just part of market cycles. Before getting into a trade I have a plan based on the price action at that moment. Every stock can be different though. It could be a 5 minute plan or a 1 year plan. Nonetheless, having a plan will help take emotion out of the trade so you can focus on finding good entries and then let the plan work.
That's really the key isn't it? Just because the news is great doesn't mean the price will rise. Ok so a bunch of people think "ye that's great news I'll buy some." What better time for a few hedge funds to unload a couple 10 million shares to take profits over a one week period and only see a .50 drop in price.....sometimes when buyers are lined up there is someone at the door with armloads to sell. You just never know.
AA is a good stock and more importantly a different company from 5 years ago. It's a good long term holding. That said, anything can happen.
In the short term, I believe the share price will RESUME it's rise shortly. The market is in a pause, so it's not strange that AA is stalled.
Obugi.