See also previous blogs. This is it we think, that is if you do not enjoy 50% haircuts.

The then – Feb. 3 , a week ago – and now charts;

The difference from the high as indicated in the left chart, to today’s low is about 10%. Soon it will become a lot more.

Air Canada is not quite at our ideal target but the “turbulence” sign is glowing brightly and you have been requested to fasten your seatbelts. Time to jump.

We had a good call in the past on this stock, all though not wholeheartedly. It is by its very nature a terrible business given all the variables of nationalism, monopolies, regulation and high capital costs. Fuel costs are also a large component in the overall operating costs and now that crude has dropped significantly it is assumed that these companies will start making a lot of money.  Pan Am went bankrupt when oil was at around $24 and dropping and using that example it would appear that capacity utilization, or the lack of it, was a more serious critical factor.

    In any event we , potentially, have a clean 5-wave move up from just under a single dollar to the present almost $13. The 5th wave of this sequence is probably not yet complete. It would appear that we are in a minor 5th of 5.  Either way, $13 to $13,20/40 is where the upper trend line runs, depending on when it is reached. Once it has reached these heights it should drop back to $5.13 at the very least. We would not wait much longer to sell. The RSI and MACD confirm that a turn is just around the corner.

There is an alternative and that is that wave 4 ended at the $5.13 level and that from there a large wedge started. This scenario would allow for a rise to about $14, not worth the wait.