Will Warren Buffett Be Wrong About Airline Stocks?I am watching JETS @ $14.10
Which is a basket of Airline Stocks.
No one is going to ride a horse, from Alaska to Florida.
Or, anywhere else, for that matter.
JETS trade ideas
JETS Upward Swing TradeAMEX:JETS
Fundamentally, money in anything related to airlines may not seem like a good idea unless you're looking for a long term investment). However, looking at short term price action, this looks like a good swing candidate for modest 10+ percentage (20% if hits top of channel resistance and much more if breakout). Stoch RSI reversal to bullish in progress.
Disclaimer:
I do not offer financial advice nor am I a certified financial advisor. I am self educated in investing and trading in the stock market and have 20 years of experience and share information here as contribution to the community.
JETS propelled past channelJETS is breaking a bear triangle formation channel, with very high volume as seen in chart.
In the chart you can see the next resistance drawn. Which are the 200 and 50 simple moving average.
OBV has been trending higher, making higher lows, and is following the channel drawn.
JETS is an ETF holding airline stocks, its portfolio top 4 holdings and % weight are:
LUV (13.66%) - Southwest
AAL (12.49%) - American
DAL (11.00%) - Delta
UAL (10.52%) - United
Total= 47.47%
JETS ChartCharted the main box ranges and then also included high volume lines which can act as either support or resistance. If price is coming up from below HV line can act as resistance. If price is coming from above HV line can act as support. High volume line is where price saw the most action (where the most buying and selling took place) for this reason, it is understood to be the fair price as both buyers and sellers were eager to buy/sell at this point. As of now price is in discovery the former downtrend (lower lows and lower highs reversed on ~March 23rd. Current plan is to wait for price to re-enter a range and breakout to establish trend direction.
Charting was done on 1W timeframe and then finished on 4H timeframe.
Contrarian Airliners TradeWhile I would always advise to never buy stocks reading 20 on the 14-period daily RSI - I think this ETF is screaming contrarian to the coronavirus concerns. A lot of these airliner names are trading below their intrinsic value from a PV of future cash flow basis. Something to think about.
JETS finally taking offAirline stocks have had a lot of bullish options interest for the last month or so, thanks to their attractive valuations (less than 10 P/E!) and strong earnings growth. However, the stocks have been unable to break out due to high fuel prices. With Iran conflict cooling and oil prices falling, the JETS ETF is finally gaining some momentum this week. Individual airline stocks such as JBLU and SAVE got upgrades yesterday, which should be good for the ETF's near-term performance.
JETS ETF near resistanceThe JETS airline ETF has been soaring lately on upward guidance revisions from Jet Blue, Alaska Airlines, and Delta Airlines. It is above its MACD signal line on both its daily and weekly charts.H
owever, the ETF is approaching historical resistance at 31.50, and rising crude prices mean that the airlines may take a hit from fuel costs and may not achieve their revised guidance targets on earnings reports. Overall, this sector is strong but carries some risk of a reversal in the near term.
Airlines: Ready to take off Jets is a ETF of multiple airlines. ALK is Alaska Airline which was a huge winner since 2010 but has now had a fairly long sideways consolidation. I think they both are primed to go up again. If buy now you could use any daily close <then the current weekly low as a stop.
some authors notes:
seekingalpha.com
seekingalpha.com
