How are you going to trade Cramer’s #1 Draft Pick — US Airways (LCC)?
Discussed in this article: US Airways Group Inc. ( $LCC )
Lets look at LCC that’s US Airways ( $LCC US Airways Group, Inc ). I noticed on CNBC Cramer picked this as his number one stock of, I guess 2014, whatever. They’re doing the whole draft thing there and I think earlier this month or last month it was like March Madness, so lord help us when the baseball season really starts; maybe we’re going to do the seventh-inning stock stretch or something.
Cramer really likes this company; you look at the weekly chart and there is something to like here. Now here’s the thing, I just did a quick look at the fundamentals here. This company, and this data is from MarketSmith.com, it’s an IBD product; they’ve got quarterly earnings growth. Every quarter vs. the prior quarter, from, you know from the same quarter last year, year over year, of three figures. A hundred percent, every quarter grows over a hundred percent from the prior quarter in the prior year. So that’s a pretty strong earnings growth.
The trend is also pretty strong so here’s the thing; you’re going to see a lot of bullish commentary about this stock for the aforementioned reasons. You’ve got the 50-day moving average that’s trending higher; you’ve got higher highs, higher lows, now the stocks in consolidation mode. I would say anywhere in here is a time to start buying this stock. You could even take a bit of a position right now, though hopefully we get a little bit of a pullback or even just some sideways drift for a while, for a sufficiently long period of time to allow the 50-day moving average to catch up to the price, because that’s what you really want to do.
If you just look at how this has traded and you see, you know, a lot of stocks do this. If you really just pinpoint the times that they’ve hit a key moving average, first just look and make sure that they’re uptrending, if they’re not trending higher then forget this analysis, but if they’re trending higher you look and see how they’ve traded after they’ve hit the key moving average. In this case it’s gone higher and so I like this.
Bottom line is you want to stay long this stock; as long as it remains above the 50-day moving average I think US Airways ( $LCC US Airways Group, Inc ) is going to work for you.