Here’s how I’m trading the airlines. Check $LUV $JETS $AAL $UAL $DAL $HA (October 12, 2021)


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I want to look at the airlines real quick. First of all, you probably know what’s going on with Southwest ( NYSE: LUV ). The CEO announced that they are going to be obeying the mandate from the White House, that everybody that works for them is vaccinated, by, I think it’s December 3rd or 5th or something like that, it doesn’t matter.

That’s not a law by the way. That’s just somebody saying you need to do this. I remember when I was a kid my dad told me I had to sit at the table until I ate my peas. I didn’t eat those peas and he finally grabbed me out of the chair, spanked me, and then sent me to bed early, but I didn’t eat the peas.

The bottom line is, just because somebody tells you to do something, you don’t HAVE to do it, but still, they’re doing it. Fine, no complaints on my part, but make no mistake about it, that’s WHY they are having to cancel all of these flights. I am not going to go into the details there, just look it up and it isn’t the weather.

So what are we going to do? I think this is an opportunity. Frankly, with Southwest ( NYSE: LUV ), for a certain kind of trader, you could buy this stock right now, give it about a 3.5, maybe 3.7 percent risk, and I think the stock is poised to move higher again. It has already had a heck of a move lower, and the thing is, we already know what’s going on.

So how could it get worse? The answer, I’m not really thinking that it can. Now, how can it get better? Well, it really isn’t the law, it’s just a mandate by one part of the government, one of the three parts, and it’s not even the part that actually makes the laws, it’s the part that enforces the laws. And there is no law to enforce. It is just one guy or somebody in the administration saying, do this, and these guys are saying okay.

The reason I am going into this is this, this crap is not over yet. It’s not going to happen, it might, but it doesn’t have to. And so you have to look at the types of volatility moves here as being opportunities. Trust me, whatever is going on with the whole vaccine and all of that jazz, these things aren’t doing that. I think they are giving you an opportunity, I can’t say for a long-term trade. Any long-term investment starts with a short-term trade.

Now, Delta ( NYSE: DAL ), they report earnings tomorrow, so who the heck knows what is going to happen? But if, in fact, Delta ( NYSE: DAL ) does start moving higher you have got to look at the rest of these. You have to look at LUV ( NYSE: LUV ). Even Hawaiian Holdings ( NASDAQ: HA ), they are going to the mask capital of the world. So you are buying these guys with a stop right here, give it 6.5 percent room, or maybe just down here at 20.75.

What I am saying is, even though these stocks don’t fit the typical pattern, the fact that they are all doing the same thing should give you some sense that there are some opportunities here. Here’s the ETF ( NYSEARCA: JETS ), the same thing, zigzag. JetBlue ( NASDAQ: JBLU ), a nice potential takeoff off the bottom here. They don’t report earnings for another couple of weeks. Buying it here, setting a stop down here, 4, 4.5 percent.

But wait, there’s more, American Airlines ( NASDAQ: AAL ), they report on the 21st, 9-days from now. A lot of overhead here, this is a fairly steep fall here but this could work. UAL ( NASDAQ: UAL ), it’s probably not my best choice here as I just look at this. What I am saying is, there are a lot of opportunities in airline stocks.

You hear about what’s happening with Southwest ( NYSE: LUV ) and the consensus is, you have got to stay away from these stocks. Well, as I look at them, sure I get that, but maybe you don’t need to stay away from them. Maybe you need to start looking at this pullback after, by the way, this big breakout here, maybe you need to look at this pullback as an opportunity to catch the first correction after a breakout.

Anyway, that’s how I am trading these things, I hope this works for you.

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