I believe the XAL (Airline Index) will decline at least 5% from its recent high of 61.74 on 1/4/07 within the next 4 weeks. Based on my system, the sentiment and valuation of the XAL Index hit extremes on 1/4/07. Correspondingly, I have taken a short position in IYT at 83.24 on 1/5/07. 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. Short position: IYT Entry Price: 83.24 Stoploss: 91.56 Time Stop: 4 weeks Exit: Pending system signal
airlines are a great investment despite they lose money the demand for airtravel will only increase as the 3rd world becomes more developed and globalizationers take control AMR will go to $100 i guarantee it PEOPLE NEED TO FLY OIL GOING TO 30 NO MORE TERROR PEOPEL DONT MIND STDING IN LINE AND TAKING OFF SHOES IF IT MEANS NOT GETTING BLOWN UP they arent going to take the friggin Queen Mary.Business travelers need to fly. people arent going to take the train or a boat. American Arilines (MAR) is the numebr one ariline and will have the gretest growth.