Bearish on Airlines (XAL Index)

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YIELDSAFE

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
 
Quote from YIELDSAFE:

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
More...

10% stop loss, I thought you would put the stop in around 89 which is around 7%.
 
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.
 
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