Bullish on Airlines (XAL Index)

YIELDSAFE · Posted: Mon Aug 14, 2006 1:24 pm Post subject: Bullish on Airlines (XAL Index)

I believe the XAL Index (Airline Index) is due for a rebound rally within the next 4 weeks. During this rally, I would expect the XAL to reach at least 47 or more from its close of 44.65 on 8/11/06.

Based on my system, the sentiment and valuation of the XAL Index hit negative extremes on 8/11/06. Correspondingly, I have taken a long position in IYT at 75.54 on 8/14. Given the lack of pure plays on the XAL Index other than the XAL options and underlying stocks, I chose IYT as my vehicle of choice.

Long position: IYT
Entry Price: 75.54
Stoploss: 67.99
Time Stop: 4 weeks
Exit: Pending system signal

F1sh7 · Junior Poster Joined: 20 Jul 2006 Posts: 34

That was an impressive call, again, YieldSafe.

Nice job!

YIELDSAFE

YIELDSAFE

rffrydr · Posted: Mon Aug 14, 2006 2:05 pm Post subject:

Daring dude.

Technicals sometime mask certain "cultural" qualities in the underlying price points along a line. In the Airlines, for instance, other than a breif consolidation mania in the 80's the Airlines have been a black hole for investor's money since the days of the Wright Brothers (no Ford).

To the extent it's a short-term oil trade... I like it Wink

Find an unhedged flyer if you can.