Aircastle Ltd (AYR)

Company

Aircastle is "a global company that acquires, leases and sells high-utility commercial jet aircraft to airlines throughout the world. High-utility aircraft are generally modern, operationally efficient jets with a large operator base and long useful lives. As of September 30, 2009 Aircastle's aircraft portfolio consisted of 128 aircraft and had 60 lessees located in 34 countries. From time to time, we also make investments in other aviation assets, including debt securities secured by commercial jet aircraft." (company website)

Sell short

3 March 2010. Sold short 500 at $9.52.

AYR peaked in January at $11.42 before falling back all the way to the 200-day moving average; the following high was much lower than that, establishing a downtrend, and it has since fallen below the 50-day moving average again. Although it may be forming a triangle, I am predicting that it will fall even farther before starting another upswing.

• Percentage price oscillator (PPO) — just crossed below the signal line after four consecutive days of selling off with volume
• Volume — in 2010, the higher-volume days have all been down-days

The wildcard here is that AYR is scheduled to announce earnings before the market opens on Friday.

Based on technical analysis, MarketEdge calls AYR a "neutral" in a "weak downward trend." Although they note "mildly improving conditions" they counsel to "hold short."