Airline stocks are enjoying a sharp upswing today. The industry is recovering strongly as fuel prices tumble. And investors are also encouraged by the Delta (NYSE:DAL) and Northwest (NYSE:NWA) merger. But Andrew Snyder says this remains a high-risk sector for stock investors.

The airline industry has been one of the hardest hit by this summer’s run-up in crude oil prices.

British Airways (LON:BAY) CEO Willie Walsh says it’s “the worst trading environment the industry has ever faced.”

But crude oil’s retreat from its early-July peak has led investors back into the industry, says Martin Denholm in The Smart Profits Report.

And Martin’s colleague Marc Lichtenfeld has given potential investors two stocks to watch should the uptrend continue. Here’s more from Martin…

A hectic week on the economic calendar is highlighted by the initial look at second quarter gross domestic product (GDP). Remember, a recession is defined as two consecutive quarters of negative growth, so doomsayers have targeted this week’s release as confirmation of their pessimism.

Southwest Feels the Love; Minimum Wage Bump; Qualcomm and Nokia Accord; Fertilizer Firm Reaps Rewards; Unemployment Claims Mount; Ford’s Worst Quarter in History; Dow Unable to Recoup Losses; Gaming Taking Off in Macau.

Siemens Slashes Jobs; Southwest Cozies Up to Canada; VMWare Axes CEO; Office Depot Drops on Dismal Sales; Oil Drops $10 in a Week; Fed’s New Lending Restrictions; Anheuser Busch Sues InBev; ConocoPhilips Strikes Deal with Abu Dhabi

It can often be quite a lonely place and the investment crowd may call you all kinds of derogatory names - but when it comes to stock picking, nothing beats the feeling of striking out on your own, going against conventional wisdom and being proved correct.

I hope you enjoyed the Memorial Day weekend - and that your wallet still has a pulse if you did any traveling.

Nokia Shares Plummet on Missed Earnings; “The World” Developer Posts Quadrupled Annual Profits; Google Beats Estimates; Capital One Profit Drops 19%; TD Ameritrade Gets a Boost; Societe General Chief Steps Down; Avant Soars on Pfizer Deal; Southwest Ekes Out Profit.

I’ve always considered airlines to be, hands down, the easiest way to lose money in the markets.

Delta Air Lines Inc. (DAL) and Northwest Airlines Corp. (NWA) are now officially one company, and together now represent the world’s largest airline carrier.