A Weekend Note - Come Fly with Me

Qantas grounded? I cannot imagine that a once great airline that others emulated would end up near bankruptcy. I cannot until I realize that Qantas is not the first one and probably will not be the last. At one time, Qantas was the airline to fly to the South Pacific islands of Fiji, New Zealand, then continue to Australia. They owned a building on San Francisco's Union Square and they one of the best airlines to fly for service.

What happened to service? Well, speaking domestically, it was one of the first things cut after deregulation, as competition heated up with lower and lower airfares. With no guaranteed fare structure and the need to keep in the air despite of rising fuel and parts prices as well as rising union packages for pilots and mechanics and ground crew. Internationally,  grand airlines subsidized by governments are no more. National airlines used to be the pride of nations and were used to attract tourists to their homelands: Swiss Air, Singapore Air, Pan Am, Qantas chief among them but alas, nations can no longer support themselves let alone subsidize airlines. Those airlines experienced competition for the first time, as nations allowed more international airlines to fly to their lands.

Deregulation was going to  bring needed competition for lower airfares and better routes, and of course it was going to take care of air service to less traveled routes. All of which was theory and now we can also argue  perhaps a failure. Airfares competed but service paid a dear price. Oil prices were not expected to rise to levels they are today and of course the contracts signed in the days of bounty have become a major burden. Hence aircraft are not as well maintained and of course service suffered and then got clobbered when security became the most important aspect of going anywhere.

Under regulation airfares were the same, nationally and internationally,  to destinations no matter who you flew. Therefore the only way to compete was .. well ... service. Airlines emphasized service as a way to attract customers, and tried to outdo each other with comfort, lounges, food and entertainment and it was not a cheap prospect.  Flying was expensive or shall we say more expensive than it is today when adjusting for inflation. Still, those who flew then and fly today miss it although well aware of the current selection of airlines competing for our dollar with service. Still, those who remember how it was before deregulation, feel it more keenly and nostalgia, for what it's worth, kicks in once again.

Come to think of it, the markets did a nice job of taking flight last week, see review and outlook below.

Happy Trading, Living and Flying
Anni

The Daily Pick -  DJIA

 ©DayTrading with Anni 2011 All Rights Reserved

The Daily Note - It's Your Oyster

I am actually not sure where it got started. I know I've always talked of more than just markets, charts, setups and trades like anyone else. It was a way to connect with others who may have liked to do the same things. As the years passed I shared my love of music and dance and many other topics usually somehow tied to trading. Although my blog grew, it never really exploded with readers, but those who came for the most part stayed. I've wondered often how they found me, where even why, but it really didn't matter when it's gratifying just to be read. One story touches others, the reasons aren't as important as the connection.

Then came Twitter and StockTwits where everyone flocked for new ideas, quick help perhaps quick money. The exchange of trading information exploded. As it grew one did not know where to put the ideas for most exposure and most viewing. While one feels fresh and others stale, all the while I try to please it all. Impossible to say the least, but then, I was always one for trying the impossible task. Of course one does not always succeed and often in doing, one loses sight of the original idea: to write about trading and life and how they relate.

I've fallen out or away from that and now feel a bit lost in this dark wilderness, but I know it to be part of the circle, the spiral of growth. I know that despite the feeling of being lost, I am on a path of something I cannot leave or give up. I will come into the light again, like a friend told me. I have many readers in all areas, from all around the world and I appreciate you all. I will not abandon any one group or another, I may just need a bit of adjusting .. my attitude perhaps?

It feels sometimes like that in trading also. Especially when choices are a struggle or too many. Too many stocks to choose from can get one lost in the abundance, too few and one can feel a bit of fear about how it will go. Yet the truth is that for as long as I have been calling trades and sending out charts, the number of choices have always been "just right". Like the bears and Goldilocks found out, when one has no expectations whiles exploring, usually the world opens like an oyster revealing the best pearl.

I suppose that is the best attitude adjustment one can hold on to, image of beauty perfection like only nature can give. So, be it on a mountain or by the sea the oyster of abundance is always in front of us if we have the eyes to see.



Happy Trading, Living and Dancing
Anni
©Day Trading with Anni 2011, All rights reserved

The Daily Pick - DJIA


©Day Trading with Anni 2011, All rights reserved

The Daily Note - Fly Google Air

I posted a Pre-Market Charts and Music on StockTwits yesterday morning that basically stated that if it held above $550 during the day, it was possible that it would hit the top of the gap at $587: $GOOG http://stks.co/bVz. As Google progressed during the day it became more and more evident that the 555 would hold not just the 550. Did "someone" know something? Actually the evidence of leak can be pointed to when it started ramping in the final minutes of the day to $559, but by then, my earnings play strategy was published and ready for execution.

Usually GOOG reports right after the close, so there is no time for even a breath before the reaction occurs. In other words, you better be ready for the play, or sit it out. When deciding for the "long" play entry I felt there would be about a 4-5 point pop before the long execution would kick-in. I also tried to give it enough room to bounce in case it dropped first. But still I expected a more muted reaction on good news than it received. So the take off, despite of previous history, was a pleasant surprise. Like going from 0 to 60 in 10 you could say.

You could also say that I missed by grossly underestimating the targets on this Pre-Close Google Earning's Play setup.



We'll fly away:



So Google's got wings again. I wrote a few months back that I didn't think it would see 700 again. Well maybe now I'll rethink, but not so quick, friends, not so quick. Everything is in cycles and first we'll have to see if this cycle is just the beginning or a quick shot to the moon in the end.

Hope you had a pleasant flight,
B'bye
Anni ;)

Disclosure: We never hold stocks into earnings reports. Always start earnings plays from zero holdings (cash).

©DayTrading with Anni 2011 All Rights Reserved