Bullish on Airlines (XAL Index)

[YIELDSAFE]

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

[rffrydr]

There's a double (and "V") bottom:

http://stockcharts.com/h-sc/ui?s=$XAL&p=DAILY&b=5&g=0&id=p76026272481

Nice to see this UP on crude fall...we're breaking out of the viciousness of this circle.
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Today is the Tomorrow you worried about Yesterday!

[rffrydr]

Interesting the high remediation rates MBIA is getting off these BK'd airlines. Seems like bonds are the long-term way of playing these serial BKers.
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Today is the Tomorrow you worried about Yesterday!

[rffrydr]

Crude continues to break down despite it's bullish inventory data yesterday. OPEC actually calling for demand reduction. Probably left something on the table.

Less gutsy folk are short the XLE.

[HenryTo]

Yes, very impressive and gutsy!

[F1sh7]

That was an impressive call, again, YieldSafe.

Nice job!

[YIELDSAFE]

[YIELDSAFE]

[rffrydr]

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

Find an unhedged flyer if you can.