Vote Of Confidence For Continental=0ACarl Gutierrez, 08.16.07, 10:55 PM ET = =0A=0APopular Videos=0A=0A=0ASportsMoney: Wreckless Robby =0AThe T-Shirt Th= at Texts =0AThe King?s Business Lives On =0ANick Cannon "The Entrepre-taine= r" =0AHip Hop Cash Kings =0A=0A Related Stories=0ABargain Investors Are Dir= ected To Continental=0AWord Of A Bargain Lifts Continental=0AFriendlier Ski= es For Airlines=0AThe Friendly Skies=0AUpdate -- Legacy Carriers Fly Back I= nto Favor=0A=0A Today's Top Stories=0A=95 Wall Street Gains On Discount Rat= e Cut=0A=95 Dubai Exchange Bids For OMX=0A=95 ECB Could Hold Rates=0A=95 BN= P Puts On A Happy Face=0A=95 Hurricane Dean Rips Through Caribbean=0A=0AMos= t Popular Stories=0A=0A=0AThe Best Business Schools =0AInsider Guide To Lat= e-Summer Sales =0AHottest Bollywood Films =0AStunning Solar-Powered Homes = =0AMeanest Presidential Candidates =0A=0A=0A=0AJ.P. Morgan looked to the pa= st in order to predict the future for Continental Airlines.=0AOn Thursday, = Continental (nyse: CAL - news - people ) rose 9.7%, or $2.57, to close at $= 29.02 after J.P. Morgan analyst Jamie Baker said the current worries about = air travel mirror similar, but unfounded, fears from last August. The late-= day comeback of the broader stock market only served as a cherry on top for= the day. (See: "Wall Street Slips But Regains Its Balance")=0ABaker said h= e disagrees with the pervasive thinking that credit woes and subprime jitte= rs will put demand for air travel in jeopardy. =0A=93Having consistently vi= ewed fear as an opportunity in the past,=94 Baker wrote, he is adding the H= ouston, Texas-based company to the J.P. Morgan Focus List with a 12-month p= rice target of $37. Baker also rates the company as =93Overweight.=94=0ALas= t August, airline shares fell on terrorism concerns following the liquid-bo= mb plots uncovered in London, Baker noted. There were also fears that trave= lers would stay away as airlines cut back on the size of toiletries that co= uld be brought onboard, he said. =0A"This time last year, CAL (and others) = triggered our Down 30 in 30 rule, on fears no self-respecting business trav= eler would dare fly in the absence of super-sized toiletries," Baker wrote.= =0A"The market,=94 Baker said, =93was wrong."=0AThe =93Down 30 in 30,=94 w= hich is technically "Down 30 within 31," examines near-term corrections tha= t measure 30% or more within any 31-day trading window, and the resulting r= eturn potential over the following 180 trading days.=0ABaker feels the curr= ent drop has been overdone, and, looking at the past decade, Baker noted th= at every time shares of AMR Corp. (nyse: AMR - news - people ), the parent = of American Airlines, or Continental Airlines, pulls back 30% within a 31-d= ay trading window, shares have consistently rallied over the next 180 tradi= ng days.=0ANow, Baker sees Continental down 31%, while AMR Corp. is getting= close with a 26% drop. =0A=93(It's) no guarantee of future performance,=94= Baker wrote, =93but this rule has served us well in the past.=94=0AAt the = end of his report Baker noted that Continental remains sensitive to even th= e slightest fluctuations in demand for air travel, and if the U.S. economy = should weaken, earnings could get hurt as a result. Continental is also vul= nerable to changes in energy prices, labor-related actions, and airline-rel= ated acts of terrorism. =0AOn Thursday, AMR Corp. rose 5.8%, or $1.23, to $= 22.44. The late-day general buying spree lifted Northwest Airlines (nyse: N= WA - news - people ) 7.2% on the session, or $1.07, to $15.98, and Delta (n= yse: DAL - news - people ) rose 1.2%, or 17 cents, to close at $15.92. UAL = Corp. (nasdaq: UAUA - news - people ) closed up 1.2%, or 44 cents, to $38.5= 6; US Airways (nyse: LCC - news - people ) finished the day up 5.2%, or $1.= 32, to $26.91; and Southwest (nyse: LUV - news - people ) closed off 0.1%, = or 2 cents, at $15.17.=0AOn Wednesday, the airline sector fell hard as oil = prices rose, though shares of Midwest Air Group (amex: MEH - news - people = ) kicked up 5.3% on word of a higher bid for the <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> If you wish to unsubscribe from the AIRLINE List, please send an E-mail to: "listserv@xxxxxxxxxxxxxxxxx". Within the body of the text, only write the following:"SIGNOFF AIRLINE".