ucsgears

LUV - The upside for a bounce (Pure Technical Setup)

NYSE:LUV   SOUTHWEST AIRLS CO
246 23 7
Airlines are flying high, Time to short? absolutely not. Are there divergences? Yes. Is there weak trend? Absolutely on the overall industry group. Will this be a short, Not until the Oil             prices finds its bottom.

Yes, this may have trouble flying to new high, if the market is capped with current level. The Usual suspects for the current weakness is from the Sensitive sectors, Techs, Industrial and Energy. Remember these are important, with 40% weight on SPY             and 60% weight on QQQ             .

Before i get diverted, The next bull mode in SPX/QQQ the airlines are to be watched for.

Also keep an eye on their earnings as it unfolds. FYI - Earning on LUV is 1/22
jangseohee
2 years ago
Sound like SKX...
When divergence never exists
Reply
jangseohee
2 years ago
from Directional POV,
+ve DI is below black signal line, does not look good
i wont rule out a final spike to finally see shooting star :-)
snapshot
+1 Reply
ucsgears PRO jangseohee
2 years ago
I am only looking for a bounce here. Provided the sector XLI turns bullish as well.
+1 Reply
ucsgears PRO
2 years ago
With this gap, UAL, DAL, AAL is all hitting resistance. I would take the bullish trigger after a re-tracement, if it holds.
Reply
ucsgears PRO ucsgears
2 years ago
WINNER - The reason I was favoring LUV was because of my correlated strength rating indicator. I have not coded that for TV.
+1 Reply
jangseohee ucsgears
2 years ago
Bearish divergence :-)
that Gap up i feel bearish..
Reply
ucsgears PRO jangseohee
2 years ago
I do not disagree, But this is the strongest of all the AIRlines on the day i scanned. I will never ever short the strongest stocks from an industry group.
+1 Reply
jangseohee ucsgears
2 years ago
i am the only idiot who go against a strongest bison :-)
but its cheap options, strike 50, expiry Jan 16
Reply
ucsgears PRO jangseohee
2 years ago
May be you are over smart for the market. I am not really the smartest, I like to go into details while i research and keep things simple when i execute. Keeping it simple will make it easier to follow.
+1 Reply
jangseohee ucsgears
2 years ago
i tend to jump the gun :-)
you are right indeed, bearish divergence is potentially forming, a better confirmation will be bearish reversal candle
Reply
ucsgears PRO jangseohee
2 years ago
What do you use for Bearish Divergence? Macd / RSI or both?
Reply
jangseohee ucsgears
2 years ago
1. i normally use MACD, or RSI or combine
2. Force index, Money Flow, CCI and DMI (are additional gadget.. not necessary)
3. Volume by itself can be used as divergence but pretty ambigous
i will explain all.

Unfortunately MACD has no DIVERGENCE!
Gotta summon the other
RSI, Force Index, MFI all shown bearish divergence.

Still a short for me.




snapshot
Reply
ucsgears PRO jangseohee
2 years ago
I use the relative divergences on Stocks. Long term RSI - Short term RSI (RSI or your choice). Happens to work better for me. I do have another indicator to tell me, when to trade divergence / and when not to. Combine all these with the Relative Sector Strength, The best of all will be loaded through automatic scan. Then I go in and manually pick it up.
+1 Reply
jangseohee ucsgears
2 years ago
that sound abit complex for me.. is it easy to illustrate here or PM?
i will also use monthly besides weekly and daily

nice discussion :-)

snapshot
Reply
ucsgears PRO jangseohee
2 years ago
The Point is, Not all divergences Pullback to take out support (some divergences are consolidation), This totally depends on the indicator you are following and how you use the divergence, Smoother signals works better.
+1 Reply
jangseohee ucsgears
2 years ago
total agree.
daily chart. MACD confirm divergence
and this round the volume use to push price higher is lesser..
I am just sharing how i use it for my trade combining with channel top
not necessary i get it right every time.
snapshot
Reply
jangseohee
2 years ago
whats happening bro? LUV got thrashed?
From 47 to 42 in 3 days?
Reply
ucsgears PRO jangseohee
2 years ago
Did I ever say, Buy and hold? Trading is different than investing. If someone is basing investing opinion from 30 Mins Chart - They need help.
+1 Reply
jangseohee ucsgears
2 years ago
Well said, poor dump money :-)
Reply
ucsgears PRO ucsgears
2 years ago
Which I am willing to provide for a price. ;). I do point out when the target gets hit. Infact this had a nice bonus after earnings. AAL - Still has negative sentiment after the earnings.
+1 Reply
jangseohee ucsgears
2 years ago
whatever it is i am short now!
+1 Reply
ucsgears PRO jangseohee
2 years ago
A counter trend trader will never agree with a trend trader - We all have our ways to trade. Good luck
+1 Reply
jangseohee ucsgears
2 years ago
same to you too
Reply
Ideas Scripts Chart
United States
United Kingdom
India
España
Italia
Brasil
Россия
Türkiye
日本
한국
Home Stock Screener Economic Calendar How It Works Chart Features House Rules Moderators For the WEB Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Private Messages Chat Ideas Published Followers Following Priority Support Public Profile Profile Settings Billing Sign Out