Hi, World! I hope you’re doing sensational. I’m back from GA and had an enjoyable visit with the family. The market is closed this upcoming Monday. My girlfriend works at a bank and she’s actually off. Hopefully I am, too? Anyway, take time off this weekend. Make sure you enjoy yourself and spend time with your family. Maybe fly somewhere you haven’t been before!
Airline Stocks
Speaking of flying gets me thinking of the airline industry. I believe the airline industry is poised to break out and continue higher.
LUV has kind of been leading the way with ridiculous growth in the stock. AAL actually looks like the weakest of the airlines, followed by BA, but looking at DAL and HA, those two look ready to move! I would couple those two with the industry because I’m seeing a lot of similar patterns. Let’s see: on 7/8/14 and 8/8/14 we see massive buying pressure in most airline companies, with DAL, AAL, HA, BA, JBLU and LUV all forming beautiful hammer candles with a lot of volume and higher highs (especially after 8/8/14).
Delta In Stair Step Pattern
Looking at the Delta Air Lines (DAL) chart specifically (and I am already in 300 shares of HA) the black arrows show the incredibly strong buying pressure coming off the lows of the move, forming a very interesting pattern. With this pattern, $39 is a strong support and any retest and bounce off of this price level looks very strong to me. Right now it appears DAL is in a small, sideways consolidation pattern known as a stair step pattern. If DAL closes above $40.94 I would be more bullish than bearish.
Disclosure: As I mentioned above, I’m in 300 shares of HA and am already in a $16.00 covered call for September expiration. If the airlines have a strong bounce, I’m seriously considering buying to close the call I sold and selling the $18 CC for Sep (or October).
All I’m doing is creating a plan, folks. Now, we just have to be disciplined and follow it! Trade on, my friends!
