I want to begin tracking the airlines a bit closer because they have benefited greatly from falling oil prices while being able to keep ticket prices high due to low unemployment. But when oil begins to rise again and the next recession hits (cautions about new hiring are already out there) airlines should crash back to Earth just like they always do. Airlines are cyclical.
Per below, the top could already be in for Delta but out of respect for the current trend I'll pick a move back to the top rail as my primary count for now. However, a gap lower per the blue model and that could change quickly.
A breakout in oil will spell the decline of the airlines.
No comments:
Post a Comment