Enzio's Clock

Summary

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:

• LUV:US      minus  1.3%
• 293:HK    plus    13.8%
• BAY:LN      plus     4.5%

RECOMMENDATION: IMMEDIATELY SELL these shares now, if you believe that Friday's market drop on Wall Street heralds further market falls on account of a worsening Economic Time.