UAL - rallying on more lousy data

United Continental (UAL) posted November airline data, and frankly, its just not good enough. Yet, Mr Market found it acceptable, and the stock closed 7.7% higher to settle @ $23.06 - the highest close since July. The current 8 day ramp is going to be very hard to sustain, not least if the main market peaked at yesterdays FOMC.


UAL, daily

Summary

The airlines remain a treacherous sector to meddle in, and UAL remains one of the most volatile stocks out there.

Todays news: UAL Nov' operational performance


Lousy margins, still a loss maker

Like many airlines, UAL is finding it difficult to make a profit on the average airline passenger. Despite its best efforts - and with WTIC Oil <$100, UAL is still losing money.

Key Stats - Yahoo! finance
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From a price perspective, I find it difficult to imagine UAL will remain in the $20s for more than a few weeks. Certainly, if the indexes break <sp'1300, then UAL will probably be right back where it started in early August in the $17s.

Even the Cramer from the clown finance TV network always steers clear of the airlines.