AIG turning up from a base, 10+% upside to resistance

Mar 18, 2016

Quick observation: AIG is turning up from a base and is lagging far behind TRV which has already returned to its highs.

I would risk a drop back under the EARNINGS SUPPORT line about 2% lower (but use a 4% or so stop loss) and target a rally to the 60-62 area, up more than 6-7 points or 13%.

Keep an eye on TRV to make sure it holds up against the highs or else AIG will likely turn back down. What we want to see is a gradual 'catch-up' as investors slowly sell out of their TRV positions are re-position into AIG.

The valuation of AIG seems less solid than TRV which earns steady returns while AIG's quarterly earnings are more volatile.

Do your own due diligence:

Tim

53.76 last AIG
10:35AM EST 3/18/2016

Apr 19, 2016

Note

Working very nicely. AIG up and TRV flat.

May 25, 2016

Trade closed manually

AIG has had a nice surge from the base and I'm happy to bank the profit here and find other compelling values. There are plenty of other stocks with more earnings and therefore a better "value" than AIG. I hope you all did well on this position.

May 25, 2016

Note

58.29 last AIG- up roughly 10% from entry