Higher oil and worries about a slowing economy have hit many of the major airline stocks hard. UAUA United, AMR American, LCC U.S. Air are all in waterfall declines. CAL Continental is holding. Overseas, BAB British Air, RYAAY Ryan Air are also breaking down.
These would all be high risk shorts or longs at this point in time. Why it is relevant is that transports sometimes lead the market. The rail sector has been supported by Warren Buffett's interest. Without that it could look like a real bloodbath in the Dow Jones Transports. As is, the transports confirmed the recent high in the industrials. Some will say that the numbers are the numbers and that no matter the reason, a new high is a new high.
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