Airplanes are about to fall from the Sky! Protect your sky miles while you still can.

Posted on Sunday May 15, 2016

The airline sector looks absolutely atrocious. A sector that has never been able to get out of it’s own way benefited largely from the sell off in oil. However even after the death of Dennis Gartman, oil continues to hold up. If you need a macro factor, which I do not as a master of price action, take that one to your boss and get yourself some borrow in $XAL.

Below are my favorite setups in the indexes. There are the setups that make the most sense to me from a trading perspective.

(As you know this is not advice, but opinion, don’t come crying to me if you execute poorly)

$ALGT – 
This one is sitting on lower trendline support. It either gets a solid bounce here or dumps. I will certainly looks to sell any and all strength into the upper trend. However a break below the lower trend and that long wicked hammer will put a ton of buyers under water. I see the 161.8 fib as an initial downside target, to re-evaluate. Full measured move is down near 65 though.

$JBLU Breaking down out of a topping pattern. See if that flash crash low will act as support, if not, next stop would be the 161.8 fib at 15.25 and a full measured move to 9.66

 $AAL – Looks slightly healthier than $DB. Perfect slanted topping pattern, falling from the sky.

$UAL – Same pattern different stock.

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