Here is a simple comparison of airlines in two major events. 9/11 vs Covid.
It may surprise you to know that we are seeing the exact same pattern we
saw after 9/11. We can argue if the impact of covid had the same impact
as the aftermath of 9/11. if the industry is even the same as it was back
then if the bailouts are equal etc...
But from a charting...
Alaska Air
Allegiant
American Airlines
Azul
Controladora Vuela
Copa
Delta Air Lines
Gol Linhas Aereas ADR
Hawaiian
JetBlue
Ryanair ADR
SkyWest
Southwest Airlines
Spirit Airlines
United Airlines Holdings
If you assume we will fly again normally this could be a rare opportunity to get exposure. The index has underperformed the market by over 50% since January. #airlines #stocks
As it says on the chart, the stop loss should be very tight because this is a bet on momentum. Because this is the first lower low, there are chances for an over extended move down. This was one of the worst hit sector today.
This is not a trade that's worth a big risk.
Weekly doesn't say much, only that price is not over extended like in 2011
