Trader Mike called attention to the Transportation Index in a post yesterday. I had been watching it, but forgot about it for a week or so and therefore missed the crash through the 50 day average. The fact that the trannies have been so strong has been a big feather in the bull’s caps. Today, the index tested the 50 day average from beneath, and failed. When I see selling at such a critical junction, it leads me to believe that a breakdown might be in the near future. The uptrend line must be maintained in order to avoid a full-on breakdown.
Above is [[IYT]], the ETF that tracks the Dow Jones US Transportation Index. I’m considering selling it short. It should be noted that anticipating a breakdown is different than trading a breakdown. As long as the trannies hold the uptrend, it is entirely possible that they bounce and resume their climb. I would like to sell this around $92.50 and would look to cover near the 200 day average.
never sell a tranny short
lol. I wondered who had the balls to run with the innuendo…
The uptrend is there. Lets hope it holds. Mrs. Gwar works for SKYW & has 8 years of shares accumulated.
May you & Mrs. Gwar make another killing, G. You guys rocked the shit past Helmut, Swervedriver and Ministry back in the day. Maybe not Ministry, but you know what I’m saying.
And I think the saying is, “Never sell a short tranny.”
Old school pimp rules is the best rules. Live with it.
speaking of trannies, price war in online ticketing. PCLN sizes up empty elevator shaft
http://online.wsj.com/article/SB121330839824869541.html?mod=yahoo_hs&ru=yahoo
Orbitz to Reimburse Some
Customers if Airfare Later Falls
By SARAH NASSAUER
June 13, 2008; Page B3
Orbitz Worldwide Inc. has launched a policy to reimburse some customers who buy airline tickets and then see the price of those seats fall. The company plans to refund customers the difference in fare, if that amount is between $5 and $250.
The new program, called Price Assurance, is part of Orbitz’s push to gain U.S. market share against other online travel agents, such as Expedia Inc. and Priceline.com Inc.
“We have seen a slower growth rate in the U.S. over the last two quarters,” said Steven Barnhart, chief executive and president of Orbitz. “For us to reinvigorate consumer interest in online travel agencies, we need to give them an incentive to come to us.”
As of June 6, when a beta version was launched, any airline purchase made on Orbitz.com is automatically part of the program, Orbitz said.
The program may reach just a small slice of customers. Travelers will be reimbursed only if another customer later purchases the same flight on Orbitz and snares a cheaper fare. With airfares rising — and since online travel agencies sell only a small number of seats on each flight — that is unlikely to happen often, analysts say. The service likely won’t apply to a “huge number of tickets,” said Jake Fuller, research analyst at Thomas Weisel Partners.
Orbitz declined to provide financial details on the offer, but said: “We expect to be sending out thousands of checks per month.”
The program works like this: Once a customer books a flight on Orbitz.com, if another customer books the same flight and seat class on Orbitz at a lower price, Orbitz will automatically refund the difference. Orbitz says it continues tracking until the day of the customer’s flight. Each time the price drops and another customer books, the refund amount will increase. The company says customers will be sent a refund check about 30 days after their trip is complete.
The program’s marketing thrust aims to counter consumer angst over buying an airline ticket knowing the price may fall. “You talk to consumers — they hate this,” said Mr. Barnhart.
Many airlines already offer refunds if consumers find a lower fare after purchase, but customers are required to do the legwork. A handful of Web sites have appeared that address similar consumer complaints. Yapta Inc.’s site tracks airfare changes and alerts buyers when they are eligible for a refund. But travelers either have to call the airline and fight for their money or pay Yapta.com $15 to call for them.
Orbitz’s program is different because it automatically tracks fares and sends customers a refund. “The fact that no action is required by the consumer with this new Orbitz program seems like a better variation of the core theme” of airfare guarantees, said Mr. Fuller.
Orbitz’s competitors are considering comparable offerings. Expedia North American President Paul Brown said his company has done internal research on launching a similar service, but would create a program to reach more fliers. People book the same ticket on Expedia.com only about 6% of the time, he noted.
Priceline also is watching. “If Orbitz is a success, I would expect others, including us, to potentially follow up,” said Jeff Boyd, Priceline president and CEO.