Your Market Carpet seems to consistently come up with good shorting candidates. DAL was up the most today. I have repeatedly and profitably shorted the airlines this year, and confidently expect to continue doing so. That industry has many of the characteristics of the memory chip industry: no profits, no visibility, high capital costs, serial "restructuring" and "recapitalizing" events. Some airlines have gone bankrupt more than once, and, amazingly, can still find investors to buy their stocks.
Another pattern: you post what happened in the last 24 hours, and I respond with what's happened in the last 10 years:
Delta, the nation's third-biggest airline, has been hurt by the recent spike in jet fuel prices and growing competition from lower-cost, low-fare carriers. Less than half an hour after Delta's filing, Northwest Airlines also filed for protection from creditors. Delta and Northwest followed United Airlines and US Airways into bankruptcy. money.cnn.com
That's news from 2005. Ancient history, useful because all the reasons they failed, are still true today.
Airlines are up today, because oil is down. Oil is down because the global economy is slowing, so demand is getting soft, for oil and all other commodities. Is this bullish?
Since emerging from bankruptcy in 2007: On the day after its IPO, DAL gapped down, and has never regained its IPO price.
More recently, the 50dma has been resistance since Dec. 2010. The 50dma crossed below the 200dma in February. The brief rally up to the 200dma in May, was an excellent shorting opportunity (I was shorting UAL at the time). The failure at the 200dma confirmed: the trend is down.
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