As oil finds a new level, let’s look at how the airlines are flying. (December 04, 2015)
DJ20 SP500 XOILX USO JBLU ALK HA LUV UAL AAL SAVE JBHT CHRW
Transports. On Thursday these were the big losers (DJ-20), a key breakdown of support, you might think. But if you look back here this actually was solid support. Look here in the S&P 500. What I’m talking about is this: you see these two big down days here and it’s like, “Oh my gosh! It’s going to be ugly.” You look at the transports, the same thing. This is a key break of support, this is going to go lower. Wait a minute! This was support. THIS was support somewhere in there. What I am saying is, don’t get all lathered up about a break. Again, don’t get all lathered up about a break because you’ll see this. Check out Starbucks ( NASDAQ:SBUX ) which I’m not going to look at, that’s a perfect example of a stock that looked like it would be a “venty drip”, being poured out the end. And then another day comes by and it moves higher.
This is the way this market is right now. So with transports, here’s the big deal, crude 41.08; well it actually closed below 40.00. Big down days here. Oil is ( NYSEARCA:USO ) going down. Saudi Arabia is bound and determined to screw all the frackers. Whatever the Saudi Arabians want to do is what Saudi Arabians are going to do. They’re essentially trying to squeeze everybody out. They want to keep their market share even if oil’s trading at $20.00, by golly they’re going to keep that market share. Do you know why? Because they don’t have squat going for them over there, other than oil and terrorism. Those are about the only two things they’ve got going. The bottom line is, oil prices are going down. Boy, how is that for some controversial social commentary? Hey! That’s what I do.
The airlines are really starting to pick up because it’s getting kind of obvious, oil’s not going up anytime soon. And trust me, it won’t. It’s not going up anytime soon. I don’t know if it’s going any lower, trust me, I don’t. I don’t know if it’s going to go any lower but it’s not really going to go much higher, and airlines are acting like it. JetbBue ( NASDAQ:JBLU ). This is to one with the most POTENTIAL I’ve got to say. And do you know why? Because a lot of the others have broken out. But I’m looking at JetbBue ( NASDAQ:JBLU ), you want to keep an eye on this thing. If the stock moves up, members, you’ll be getting an alert here. If the stock moves up above 26.43, which is the upper Bollinger Band you’re going to get this portion of the video. And this portion of the video that you’re going to get is the part that says, “Hey, now that it’s up here, any breakout above 27.00 marks the next leg higher.”
Kind of like Alaska Air ( NYSE:ALK ), we got this on Friday. This is the chart you want to look at when you’re looking at these airline stocks. They’re not trading stocks, they are coast to coast stocks, you want to just hang on to them. Alaska Air ( NYSE:ALK ) is just getting going. Does anybody here think that this ultimately not going to get to 90.00? It’s not a big deal, $5.00, but we can stretch it down here and say, “Does anybody think that this isn’t ultimately going to get to 100.00?” These are the kind of trends that you like, at least that I do. Hawaiian Air ( NASDAQ:HA ), it’s way too late to buy this one, right? Well, then you look at the daily chart and this is just starting to get going too. But this is why I’m saying I like JetbBue ( NASDAQ:JBLU ) better. Hawaiian ( NASDAQ:HA ) has already done this. JetbBue ( NASDAQ:JBLU ), for whatever reason hasn’t, but it’s working.
LUV, Southwest Air ( NYSE:LUV ). I was just talking the other day about these squeezes. When they occur too far away from the 200-day moving average, they don’t really have as much upside. Hawaiian Air ( NASDAQ:HA ) would be one of those, where it’s squeezing, but then on Thursday it kind of came back to earth. But for everyone of those there’s this. But if you’re really look at it it’s not that far up above the 200-day moving average. Not that far at all. This is the type of thing that you want to look at with these. So we see LUV ( NYSE:LUV ) squeeze. Weekly chart, just coming out of a very, very long base.
United Air ( NYSE:UAL ), sideways consolidation, it doesn’t look as good as the others. But when you’re looking at the daily chart you watch for a move, say, above 60.00. I’m not saying BUY it when it hits 60.00, and it will sometime next week. I’m saying you start watching it because the actual real resistance here would be, we’ll call it 61.50. It would be like 61.50, but I want to keep my eye on it if it moves up that high. But frankly, if you’re going to trade “air” trade one of the others, it just has move potential. And then American Air ( NASDAQ:AAL ), I just wanted to throw this one in too. It looks a lot like UAL ( NYSE:UAL ). So these are really more kind of longer-term holds, they’re not really doing anything. By the way, we’ve got to look at Spirit ( NASDAQ:SAVE ). Do you know why? I’ll tell you why. Because this is what I’m talking about, with respect to squeezes. I’ve been harping on this for a while, a while meaning the last few video days, because it’s really important.
Here, the rubber band. Look at the distance between the squeeze, right here, and the 200-day moving average; really stretched. So now that the squeeze happens, this is moving back towards the middle. In other words the rubber band’s done stretching, now it’s contracting, it’s coming back. This tends to have more upside if you’re trading this. One other thing, JB Hunt ( NASDAQ:JBHT ), trucking. Do you think they use diesel? I think they do. I think that diesel comes from oil, actually it comes from the little known diesel plant, actually it just comes from oil. Look, this is a pullback, this works. Look at this ( NASDAQ:CHRW ), oversold bounce, I think so. They reported earning on Thursday. Apparently not that good, right? But they did hike their dividend. So this is really bouncing off of this support. Again, it’s just kind of a stretched rubber band looking for more upside. This would be, in my view, a trade. JB Hunt ( NASDAQ:JBHT ), this would be a position. You hold the position, you trade the trade.
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