Airline stocks rally as nations continue to push for reopenings.
2021 Market Outlook Webinar: The team at Nasdaq Dorsey Wright (NDW) will discuss the outlook for H1 2021 through a technical lens. Leave your emotions behind and join us for an objective look at the markets. Register Here
Topics We Will Cover:
- A review of current market conditions and indicators
- What the current market state could mean for the new year
- Sector opportunities, risks and early movers
- Asset class outlook and allocation considerations
Countries around the world have started to announce reopening plans, sending investors sprawling towards “reopening” stocks in the travel and entertainment sectors (Bloomberg). In particular, airline stocks have rallied on the news. For those looking for broad exposure to airline stocks, the U.S. Global Jets ETF JETS offers exposure to both domestic and international airlines and has an acceptable fund score of 3.83. Its largest holding, American Airlines AAL, will print its fifth consecutive buy signal after today’s market action, which is now testing resistance dating back to June of last year. AAL is a 4 for 5’er having been in a positive trend since November and moving to an RS buy signal versus the market this past Monday. The rally has put AAL into overbought territory with a weekly overbought/oversold reading of 80%, so those looking to initiate new positions may be best served to scale in at current levels. From here, support is offered at $19.
