Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Point and Figure Charting -- Ignore unavailable to you. Want to Upgrade?

To: Bwe who wrote (3660)	6/14/1998 10:41:00 AM
From: Al Serrao	Read Replies (1) \| Respond to of 34811

Bruce, the airlines have everything going for them right now. However, I view them as trades and not long term investments. They are capital intensive. Since most airlines except the very best managed are flying planes which on average are 29 years old they must now replace these planes. They are labor intensive. The current shortage of pilots is in part due to the reduction in the military. They are energy intensive. A hickup in oil prices hits the bottom line almost immediately. They have a tendency to fly high and then take the old nose dive when the first air pocket hits. Having shot off all of my anti-aircraft guns, the one jewel among the flying tigers has got to be LUV. Still the low cost producer with the highest satisfaction ratings among for those who fly and one of the most modern fleets out there. Clearly the best managed of the bunch. Keep your stops tight. And best of luck.

To: Bwe who wrote (3660)	6/14/1998 12:18:00 PM
From: wizzards wine	Read Replies (1) \| Respond to of 34811

Morning Bruce, A look at your Airline stocks with the sector currently at 50 %, the last two times the sector reversed at 44 and 46% respectively so we could be getting close to a reversal into X's. Of the three you listed ALK,CAI.B,and DAL , I view CAI.B as the best of the group. Below I will review each as I see them: ALK - Reversed into RS O's in the April to May time frame while trading in the 57-59 range, due in part to a short rally in oil prices. It then gave a Quad bottom sell with mostly lower tops. In todays market ALK would need a 58 with the Dow closing at 8834 to reverse back into RS X's. Currently, I'd like to see it drop into O's to 50 and then reverse back into X's to give a double top at 55. This would show restrained demand coming back into play. CAI.B - RS in X's. This one looks really good and if you were to draw another trend line BSL just at the point where it has been dropping to and holding support, you have a very nice upward progression for over a year. Little ups and little downs to support. Very nice pattern. DAL - RS turned to O's in February and it has been trading mostly sideways since December. As you can see here, with the down side risk of fuel prices the only one not effected during the last year has been CAI.B ...If ALK responds by reversing RS into X's, then I'm be inclined to look at it also per it's past preformance. Just my thoughts.... Later Preston