Merger Monday provided some strength in this index as it clocked in as one of the stronger performing sectors for the day. Stocks in this sector which are mimicking the chart pattern on the XAL are:
ALK CAL GOL LCC LUV TAM UAUA
I especially like GOL and TAM as almost all South American stocks have been outperforming everything and going forward I think they’ll have excellent growth. While this is lacking in the RSI, it’s worth monitoring to see if a breakout occurs here. It’s ironic that the airlines would fall into the Transports index which has been under-performing as of late, yet this seems to be grinding higher.
