I have been saying almost non-stop over the past couple of weeks that airlines are in a short to intermediate term bottoming formation!!! Take a look at the capitulation day in mid-July, followed by that purdy volume pattern. Does it get any better than that?
As noted earlier today, I exited UAUA, for a gain, but not as big of a gain as I could have had if I had held it to the close. Going into the fed announcement I felt I was over exposed on the long side and I was holding two airline stocks.
I did hold onto CAL. I took partial profits at the close, but am still holding a nice sized position going forward.
CAL was first mentioned as a bottoming setup in the Trade Report on July 21. It was trading at $9.25 at that time and is now trading 58 percent higher, closing today at $15.91.