Two Ways: Alcoa Polishes Outlook on China
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In a Bloomberg television interview, Kleinfeld said China reverted to being a net importer of aluminum this year, buying approximately 700,000 metric tons of the metal in the first half of 2009.
It's "clearly out of the woods," he said, "Its economy has come back and is growing again."
Kleinfeld said "things are bottoming out," and some sectors were even "coming back." Even the automotive sector was showing signs of improvement.
Shares soared approximately 7% on the news before the rally fizzled out. The stock still finished the day up 1.6%, to $9.41.
See Professor Bill Fleckenstein's Unemployment Numbers Leading, Not Lagging.
From the Bull Pen: Alcoa kicks off earnings season tomorrow after the close, so be wary of earnings risk and increased volatility. But bulls can also consider foreign stocks on these pullbacks. The iShares China 25 ETF (FXI) may be an option near $35-36.
From the Bear Cave: As for the broader US market, Professor Jeff Cooper has mentioned S&P 882 as a level of lore. Those bearish might want to watch for more follow through before entering on the downside.
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