The Chart du Jour

Dow Jones Transports

September 18, 2001

By, Barclay T. Leib

It is tempting to be patriotic and say that Monday's equity decline should be about it. After all, how much worse can it get when major airline stocks such as UAL and Continental get cut in half in one day. Surely one might think: This must be an over-reaction, and the U.S. Government will come to the airline companies' aid.

Yet when we eye the Dow Jones Transportation Average below, we unfortunately see a Fibonacci rhythm that still points toward further intermediate-term declines. On the Dow Jones Transports 1788.0 is the specific target in our mind, still some 21% lower than Monday's close.


Chart produced using Advanced GET End-of-Day

Similarly on other fronts, while a few financial stocks have now reached downside Fibonacci targets, many still appear to have similar distances as the DJTA to yet travel -- Bank of America and Bear Stearns among them.

All that we can say at the current time is that when the airlines finally stabilize for good (as opposed to just getting a knee-jerk bounce today), we'd look at Continental as the most attractive long-term play to the upside. We say this partly because Newark Airport -- an important home base for Continental -- is finally building a direct rail connection that will allow passengers to reach it swiftly from New York City and other parts of New Jersey. This should be a long-term major boost to Continental over other major carriers that primarily service JFK and Laguardia.

Just keep this in the back of one's mind for now. There is certainly no need to rush into the market and be foolish or impetuous with your investment dollars right away.


Non-subscribers are invited to sign up for a quarterly subscription below. Sand Spring's latest thoughts will all be accessible via an immediate e-mail. A user-id and password for web access to all past and future articles will then follow by a separate e-mail.


How Your Articles Are Delivered
Upon the processing of your credit card or the receipt of a personal check, Sand Spring will e-mail you the articles requested as a Word attachment, and also provide you with a WWW address and password to view the article on the web without using Word should you so desire. Confirmation of your order will be immediate, and the actual article will follow by e-mail typically within a few hours and in all cases before the opening of NYSE trading on the following day.

Ordering by Credit Card:
Our shopping cart is designed for both physical and subscription products, so do not be confused too much when it asks you for a shipping address. A correct address is important only for credit card authorization purposes. Your e-mail information is the most important piece of information to us for proper delivery of your article(s).

Disclosure Statement

Sand Spring Advisors provides information and analysis from sources and using methods it believes reliable, but cannot accept responsibility for any trading losses that may be incurred as a result of our analysis. Individuals should consult with their broker and personal financial advisors before engaging in any trading activities, and should always trade at a position size level well within their financial condition. Principals of Sand Spring Advisors may carry positions in securities or futures discussed, but as a matter of policy will always so disclose this if it is the case, and will specifically not trade in any described security or futures for a period 5 business days prior to or subsequent to a commentary being released on a given security or futures.


If you order by credit card, your credit card will be billed as "Sand Spring Advisors LLC"

Should you have any ordering problems, please contact us at
973-829-1962 or by email at the address below:

information@Sandspring.com


Take me back to the Sand Spring Home Page


Comments or Problems


Thank you for visiting Sand Spring Advisors LLC, Inc. We hope to hear from you again soon. For more information on Sand Spring Advisors actual programs, services, or to request a copy of a Disclosure Document, please phone us at 973 829 1962, FAX your request to 973 829 1962, or e-mail us at
information@Sandspring.com

Corporate Office:
10 Jenks Road,
Morristown, NJ 07960
Phone: 973 829 1962
Facsimile: 973 829 1962

Best Experienced with
Microsoft Internet Explorer
Click here to start.

The material located on this website is also the copyrighted work of Sand Spring Advisors LLC. No party may copy, distribute or prepare derivative works based on this material in any manner without the expressed permission of Sand Spring Advisors LLC

This page and all contents are Copyright © 2000 by Sand Spring Advisors, LLC, Morristown, NJ