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Should I pull the trigger on American Airlines you bounce fools?
- Thread starter Port1385
- Start date
I am all over it! You can thank the Fast Money donkeys for that run from 6.25-6.50 in AH.
It is not going to $9 like last time, maybe $7-7.50 as a position trade for a week or two.
Are you chasing it in after hours?
It is not going to $9 like last time, maybe $7-7.50 as a position trade for a week or two.
Are you chasing it in after hours?
Robbie,
This type of trade is risky, but has worked well in the past. Price sells down below the bollinger band. Usually when price is so oversold, there is a bounce.
Now we are not saying there is a trend reversal, but we are saying there is bounce potential.
I would be satisfied with a bounce to 7 for AMR and then be done for now. That would be 7-8% which I am quite comfortable making for a days work.
This type of trade is risky, but has worked well in the past. Price sells down below the bollinger band. Usually when price is so oversold, there is a bounce.
Now we are not saying there is a trend reversal, but we are saying there is bounce potential.
I would be satisfied with a bounce to 7 for AMR and then be done for now. That would be 7-8% which I am quite comfortable making for a days work.
I am not buying in AH I decided. Bounce was made from 6.25-6.56. I am laying off until I see the action on it tomorrow. If it's in he 6-6.23 range, I may very well take a stab. I like the stock I shorted today in UAUA as well to the long end as well...may have a better bounce in that one if there is a small oil correction.
Obviously long term, the airline stocks are junk and fundamentely broken and strictly a quick bounceback play.
Obviously long term, the airline stocks are junk and fundamentely broken and strictly a quick bounceback play.
Quote from Port1385:
Robbie,
This type of trade is risky, but has worked well in the past. Price sells down below the bollinger band. Usually when price is so oversold, there is a bounce.
Now we are not saying there is a trend reversal, but we are saying there is bounce potential.
I would be satisfied with a bounce to 7 for AMR and then be done for now. That would be 7-8% which I am quite comfortable making for a days work.
i understand the trade perfectly....don't you think there are better long plays out there? you don't have to fight against oil, against a broken company, and a broken industry. and also...risky trades are not good trades.
Quote from pumpanddumper:
I am not buying in AH I decided. Bounce was made from 6.25-6.56. I am laying off until I see the action on it tomorrow. If it's in he 6-6.23 range, I may very well take a stab. I like the stock I shorted today in UAUA as well to the long end as well...may have a better bounce in that one if there is a small oil correction.
Obviously long term, the airline stocks are junk and fundamentely broken and strictly a quick bounceback play.
Hard to ever find anything wrong with what the pumpanddumper has to say. Sold out of UAUA because long term the airlines cant seem to find the outside of the BK courtroom for longer than 10 mins.
Wish I would have sold sooner but glad I dumped before the 25% drop today.
Be extra careful trading for the bounces, sometimes they don't happen....