Stocks Made Strong Gains Today

The stock market had a 2 day rally today. This made it difficult for us to do any shorting in the last two days. We expect tomorrow to be different.

Here are the numbers for today.

Dow closed at 11,105.85  up 44.73  (+0.4%)

Nasdaq             2,532.15  up 37.06  (+1.49%

S&P 500           1,172.87  up 10.60 (+0.91%)

Tomorrow we have picked one stock to short. We are going with LCC. US Airways closed today at $5.64. This was up 0.79 (+16.29%). 

Considering the effects of Hurricane Irene, August traffic for the airline was up 1.1%. This is after canceling about 25% of its traffic from August 27 to August 29. Overall, the industry was profitable in the last quarter. This came as a surprise to some because there was a  40% jump in airline fuel during the last quarter.

We believe that the stock will settle around $5.24 by the close of trading Thursday.

The housing market is still trying to gain a footing. Until this happens travelers will be putting all their extra money in their houses.