A bearish “pennant” chart pattern in the airline sector tracking stock, and in the shares of a number of individual companies, suggests the worst could be yet to come for investors even as government aid has started rolling in.
In comparison, the S&P 500 index SPX, +2.29% rose 2.3% on Wednesday to close 20.1% above its March 23 low, and just 2.6% below its April 17 interim high. As John Murphy wrote in “Technical Analysis of the Financial Markets,” pennants are just brief pauses in a “dynamic” market move, and are “among the most reliable of continuation patterns” as they “rarely produce a trend reversal.”
The JETS isn’t the only chart where a pennant appears. Meanwhile, there was one possible bright spot. Delta Air Lines Inc.’s stock DAL, -2.72% flirted with breaking through the bottom of its pennant before paring losses at the close, after the carrier reported its first quarterly loss in over five years. With the lines converging, however, there should be a resolution soon.
You do not need to go up the risk curve when there are many better opportunity cost.
There is no way they all survive. Buffets got delta, so I would take that if I had to.
Yes I did. And thank you so much for the update 🙏
I believe they are a good buy right now if you don't mind holding for 18 months. I sold United Airlines today because i'm not willing to wait. If i had more money, I would for sure be holding LUV and probably one more, but I only have a few thousand bucks to invest. happy hunting
Agreed. Who wants the middle seat now in the sardine can?
$JETS and $DFEN will be ripe
Watched them all come cascading down. Might be time to say goodbye to a few of them