Planes are taking off and we showed you the setup on Monday! Let’s follow up on $JETS – September 23, 2021

by DAN JETS 
This is Scott with your Chart of the Day. I want to follow up on the Jets ETF ( NYSEARCA: JETS ). On Monday I talked about the Jets ETF ( NYSEARCA: JETS ) for the Chart of the Day and I pointed out the fact that we had a nice higher low on the chart. We have this low from back here in July. A higher low in the middle of August. And now an even higher low in the middle of September.

On Monday here, we can see we had a nice up day on higher than average volume. What I was looking for is kind of a little break above this consultative base level. On Tuesday we ended up getting a downside reversal. The stock opened up at the highs, tried to go, couldn’t go, but pulled back.

Here’s what I want you to pay attention to, I want you to really look at the volume here. The volume really tells the story. We have a nice up day, on a weak day in the market, on higher than average volume. Then we have a down day coming on low volume. So that tells me that the buyers are still, at this point, in control of the chart because they are more aggressive than the sellers. And then, over the last two days, we saw some really nice follow-through here right off of the 50-day moving average.

We pointed out to stockmarketmentor.com members, Jets ( NYSEARCA: JETS ) moving off the 50-day. And of course, you could use this low down here of $22.00 as a clearly defined level to define your risks. So if you are buying here you want to use that higher low because that’s a clear signal that you’re wrong if we get a break below that because then it’s not making higher lows it’s making lower lows.

Once the stock moved up and did it on way higher than average volume you could move your stop up to a level where you know you’re wrong. And so in this case, using the 50-day moving average, we had a nice big day here on Wednesday and a great follow-through today, again, coming on even higher volume.

Now, I mentioned in my video on Monday, this 200-day moving average potentially acting as a ceiling. And I still kind of think that’s the case. In my opinion, this stock needs to be able to get above and of course, do it on volume. But it is probably going to take a little more ebb and flow for that to happen. So what I am looking for is now, the stock to potentially get rejected at this level and then pull back to the moving averages and give you another buying opportunity if you missed this initial breakout.

As you know, in most markets this year breakouts have been retested. They kind of give you alternate entries so you don’t have to necessarily buy the initial breakout, you can buy the backtest. So that is what I would look for now, at this point, on Jets ( NYSEARCA: JETS ). You want to see a little backtest on this breakout. You want to see it come down, come down on low volume, and then watch for a push above coming on higher than average volume.

That is what I would look for here on Jets ( NYSEARCA: JETS ). If you took this trade, at this point it shouldn’t be a loss because you are up probably around 4 or 5 percent. I don’t know about you but I like to make 4 or 5 percent, I don’t like to give back 4 or 5 percent. That’s my thoughts here on Jets ( NYSEARCA: JETS ).

Free Chart