One of the main issues that the bulls face in the market going forward is whether they can now turn the prior areas of resistance on the indices (such as 2,900 on the Nasdaq during this summer) into support. If that happens, and buyers present themselves in a meaningful way, the case for becoming more aggressive on the long side becomes more pronounced.
As an example of that concept of turning prior resistance into current support, consider the weekly chart of airline LCC. Going back to the 2008 crash, you can see the significance of the $11 handle. At first, it was support in early-2008 before falling through it later that year. Since then, $11 has been tough resistance for several years now.
Recently, the airlines have been in a stealth bull run. U.S. Airways is now firmly above $11 after consolidating just above it in June. Turning that level into support figures to present bulls will a great opportunity to break out of a large multi-year base to push price much higher.
__________________________________
Not sure about “lift off”, but the $JBLU idea of yours is working out pretty nicely for me. Not sure how much juice it will have, but it’s a profitable trade. Not much more that I can ask for.
YES !!!
—
“Benjamin … one word … Airlines !!!”
🙄
.