Cracking Pocket Aces

Alcoa, or AA (which is slang for pocket aces in the poker world) was a short setup in my Weekend Video Strategy Session yesterday. While this market has been tough on shorts, AA is breaking down today from a well-defined setup.

Specifically, price was leaning down agains that yellow line, the 200-day moving average, too may times in recent months. Furthermore, Alcoa has been potentially topping (outlined, below. on the daily chart) out after an impressive bull run from October 2013 until late-2014. 

If we see a close below $13.71 then I expect the stock to eventually dip back into single digits. 

For now, the stock remains a viable short idea under that 200-day moving average, using that a dividing line for cover-stops.