“Flying” Away:
The airlines took off Monday, pun intended, but underlying strength has been present for nearly 2 months now. The daily chart below of the JETS shows the break above the very round 20 number and a double bottom pivot of 20.05. Is this the start of something very bullish going forward, or more of a reaction to slumping crude (in the face of ongoing conflict in the Middle East)? It is probably a combination of the two but it is hard to see the fundamentals improving with a strapped consumer. Some evidence airline traffic is strengthening comes from the TSA numbers that compare passenger flight traffic each day from the year before. The 2024 figures show 7 consecutive days of increased activity from 2023, and 14 of the last 15 too. Best-in-breed UAL is looking at an 8-week win streak and cruising at an altitude from which it has encountered plenty of turbulence three times previously seen here on the WEEKLY chart. SKYW is one to watch as well as it stands out above the rest on this performance charts against peers. These names never interested me individually but perhaps they are conveying something about the overall economy in a good way.