Airline Index (XAL)

Airlines printed a top in January 2007 at 65. Now they are at 21.25. It is a disaster for investors. During the downtrend they have printed also significant rebounds, but fell again to print new lows. MACD is now printing a positive divergence. Is that enough? Trying to spot the low is very difficult here. Many stocks them are printing important multiple divergences. Risk is very high. But I follow this sector with interest.

TREND ANALYSIS
In the Figure you can see a summary of the trend conditions of the Index stocks. I used the 20, 50, 100 and 200 days moving average of the close. The background is Green when the close is > than the moving average. Red when it is below and yellow when it crosses. + and - indicate the slope of the moving average.

RANGE ANALYSIS
I have also programmed Tradestation Radarscreen to display:
- range of the past 20 trading sessions (%);
- % from the lowest close of the past 20 trading session. The cell
is RED if the close of today is the lowest close of the past 20 days.
- % from the highest close of the past 20 trading session. The cell
is GREEN if the close of today is the highest close of the past 20 days.
In the other columns I included the % of the close from the 20,50 and 100 days moving average.



The stocks part of the Index are:
AirTran Holdings, Inc. (AAI)
Alaska Air Group, Inc. (ALK)
AMR Corporation (AMR)
Continental Airlines, Inc. (CAL)
Delta Air Lines Inc (DAL)
Gol Linhas Aereas Inteligentes SA (GOL)
US Airways Group Inc (LCC)
Northwest Airlines Corporation (NWA)
Ryanair Holdings plc (RYAAY)
JetBlue Airways Corporation (JBLU)
Southwest Airlines Co. (LUV)
SkyWest, Inc. (SKYW)
TAM S.A. (TAM)
UAL Corp (UAUA)