What’s been behind the strength of airline stocks? According to the New York Times
, the International Air Transport Association (IATA) slashed this year's forecast for industry losses by half due to a stronger-than-expected economic recovery in emerging markets.
The IATA was expecting losses for the industry to be around $5.6 billion for 2010 as recently as December. But passengers returned to flying, said Giovanni Bisignani, the IATA secretary general.
The association sees passenger traffic growth at 5.6% from its previous forecast of 4.5% and compared with a decline in 2009 of 2.9%. It also sees cargo traffic, which fell in 2009 by 11%, to jump by 12% this year versus its previous estimate of 7%. From the Bull Pen
: Consider FedEx
(FDX), which is sitting right at its 200-period moving average ($88.14) on the weekly chart. A pullback to $83 may be a buying opportunity. A sell stop can be set below $80. From the Bear Cave
: Airliners have always had trouble making money. But what’s the number one rule in shorting? Never short new highs. If anything, for the airliner ETF
(FAA), watch for a quick reversal below yesterday’s low, or looking farther out, a correction and a failed rally before entering a downside position.
For more ways to play and other trading ideas from more than 30 top market pros, take a free trial to our Buzz & Banter
. A Quick Check Around the World
Asian trading closed with the Nikkei
0.41%, Hang Seng
0.08%, and Taiwan
Across the pond, we see the FTSE
As of 8:05 AM EST, S&P Futures
are trading -2.500 to 1138.500 Nasdaq futures
are -3.750 to 1912.50. A Look at Commodities
Over in commodities, crude oil
is -0.03 to 82.07 while gold
is -1.800 to 1106.30 this morning. Silver
is -0.018 to 17.000 and copper
+0.0050 to 3.3740.
The dollar Index is -0.1000 to 80.6450. On the Radar
08:30 Initial Claims
08:30 Continuing Claims
08:30 Trade Balance $-40.6b Click here
for the full trading radar.
Thirsty Thursdays! Send me your best happy hour stories. Good luck!
No positions in stocks mentioned.
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