Karpel’s Corner: Is it Time to Fly or Buy the Friendly Skies?

Welcome to Karpel’s Corner. This is where I throw out my thoughts on the markets and share some of my favorite strategies. I keep it market-focused, and never miss an opportunity to teach trading strategies and commentate on the latest trends affecting the financial markets. Hope you enjoy today’s post!

On Tradespoon TV yesterday we discussed how both oil and natural gas commodities are on a slide to the downside. We have not seen that at the pumps. However, the airlines ($DJUSAR) sector could benefit from falling fuel prices.

The index hit support at $180 and the last three sessions have now bounced to over $191. This powerful reversal has put names like Delta ($DAL) and United Airlines ($UAL) on our radar. Both $DAL and $UAL demonstrated a pattern of neutral-to-positive technical signs, and looks undervalued at this price level.

The inexpensive future fuel costs and the recent price decline may present a good opportunity to buy the stock at a cheaper price.

We have a great set of webinars tomorrow and Friday on trading volatility. Be sure to register today.

See you next time at the Corner!