3SOF

AMR refused to break TL2 support on Friday. I expect it to break $34.40 on the upside before the end of the year.

AMR is acting right, and when a stock is acting right, don't rush to take profits.

Gee, I sure didn't like what came out today on CAL (we'll talk about that on CAL's thread). My airlines bet is founded on the companies delivering fat EPS in 2007, but instead I see them giving the money to the employees pension plan, take a look:

American Airlines Announces Additional $100 Million Pension Contribution

CAL's estimates for the 4th quarter, released today, we're quite weak, and I worry analysts start cutting their estimates for 2007. The same thing for AMR.

I see fundamentals weakening, or at least their perception, for the next one or two quarters.

Also, technically, AMR broke down below TL2 on the chart and it looks at least short term bearish now. I'll take my 6 - 7% profit on AMR tomorrow at the open and move on.

So, the condensed trading plan is: SELL AMR at the open.

One that moved today.......

Looking good...watch err..