Landing Strip

Surveying more unsexy setups of the lower beta variety trading at price levels that are easy to manage, particularly focusing on those with earnings already out of the way (trying to avoid some of the portfolio bombs going off recently), has led me to the airlines. Oil and oil stocks have been on a rampage of late, but what does that mean for the airlines? Is the longstanding oppositional binary correlation between oil and the airlines still in play? Correlation coefficients can be generated and graphed ad nauseum, but suffice to say, historical correlations only matter when the narrative calls for it – to reinforce a dominant mode for market engagement that acts as a proxy for a reference point OR to screw with the minds of market participants. I prefer to look at the price action and psychology. $DAL, $UAL, and $AAL have already reported earnings, and are sitting at some interesting technical levels that are easy to manage. The airlines etf $JETS is getting 2x its average volume today (trains thin). Keep them on your radar.

Disclosure: Long $DAL @43.64