If you did go long as per our blog of a week ago, we suggest getting out now. This is give or take a 40% gain on a stock you do not want to own, period.

Our first blog ever on this stock was done on the 27th of January, two working days after the stock appeared to have peaked. This blog has been running now for more than 1100 working days and AC.a is a widely held stock for some odd reason so it is interesting to note that getting it right like this has a chance of 1 in 550. Additionally I might add that I do not have a computer assisted monitoring system that alerts me to these events. When brokers say “you cannot time” the market they really mean “ I cannot time the market and I am not even going to try”.

In any event the stock is down almost 40% and one should expect , as a minimum, an A-B-C down where more often than not the C is equal to the A. That gives a target of about $5 which conveniently coincides with the 4th of previous degree. We can be wrong but we do try.

We know that buy-and-hold does not work (anymore?). We also know that owning airline stocks has NEVER worked. Ergo if it does by chance work that is because it was a trade and you were lucky. A ten-bagger in a little more than two years is lucky indeed. We are now at the nice 50% retracement Fibo level, to the tick almost, and we would let caution prevail again by getting out, now. See more detail below;