Is $JETS about to take off? – January 7, 2025
This is Scott McGregor at Scott Trades on Twitter with StockMarketMentor.com and your Chart of the Day. I want to take a look at the US Global Jets ETF ( NYSEARCA: JETS ).
Jets ( NYSEARCA: JETS ) is in an interesting spot here because unlike most of the market Jets ( NYSEARCA: JETS ) is still in an uptrend and above all the major moving averages. We had a down day in SPY ( NYSEARCA: SPY ) today. SPY ( NYSEARCA: SPY ) was under all the major moving averages.
We had the QQQs ( NASDAQ: QQQ ) down close to this 50-day moving average. But Jets ( NYSEARCA: JETS ) held up in trend and bounced off of its orange line here, that’s the 8-day exponential period moving average. So definite relative strength here in Jets ( NYSEARCA: JETS ).
We do have some airline earnings coming up, but if those turn out to be good I think Jets ( NYSEARCA: JETS ) could be ready to take off here if it can get above and close above that $26.00 level. We can see some tops going across right here with clear resistance in this zone and clear resistance right under today’s high.
If it can get above this level and close above this level I think that could be an actionable trade idea as long as it does it on higher than average volume. Now, what might stop that from happening is the longer-term trend.
If I delete all of these DAWGS here and zoom out, we can see that Jets ( NYSEARCA: JETS ) isn’t really in a great long-term spot. It’s kind of an ugly chart, let’s be honest, it hasn’t even gotten above its pre-pandemic highs. I see this clear downward-sloping resistance level, it’s not perfect but you get the idea of clear resistance here, and here. It didn’t even get close to it there, and now it’s underneath here.
So from a longer-term perspective, there’s some definite resistance to get above. But bearing that in mind, if it does break and close above 26.00, I think this could be actionable for a swing trade on that move, with a stop potentially right around the 8-day, 21-day, or 50-day moving average. I think your risk has to be defined by your size, and that’s a personal thing.
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