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.
Paul J Singh 
Why do you suppose the airlines are doing better now?I don’t see the holidays coming up any time soon. Unless we consider the summer to be one long holiday…
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The airline plays you highlighted a couple weeks ago clearly illustrate how superior chart reading and recognition of specific patterns such as volume can lead to big time break out trades. Keep the excellent blog and trading report coming!
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