Macro-Catalyst: What do you do about airline stocks now (II)?

Enzio — Sun, 17 May 2009 22:38:42 +0800

Intro-Teaser:

This is an immediate recommendation.

At the end of April we gave you a brief "trading buy" on at least three airline stocks. For the sake of good order, we re-visit our three recommendations against the backdrop of our most recent market thoughts.

Topics Covered:

Everyone knows that airline stocks are very cyclical: they move with the Economic Time®. When there is an excess supply of goods, as at present, companies cut back spending. So down goes job security. So down goes travel (the root of which is the French "travail", or "to work"...). Besides, their technical indicators all yell "sell".

Given their strong performances until then, on 30th April we recommended buying stocks such as Southwest ((LUV:US); Cathay Pacific (293:HK) and British Airways (BAY:LN).

Here is how they performed in percentage terms from 30th April - 15th May, last Friday:

Enzio's Clock - Macro-Catalyst: What do you do about airline stocks now (II)? - Comments

Macro-Catalyst: What do you do about airline stocks now (II)?