I was intrigued when I noticed these fake profits in my fake trading account this morning:
So it looks like my bearishness on American Airlines is working out. Let’s see the chart:
The logic is fairly plain: we are underneath the Himalayan Mountain Range of overhead supply, and all the zeal related to the recovery (free trillions of dollars, airline bailouts, endless government wet-nursing) is built into the price. The fact is that the world is NEVER going to be the same. People aren’t going to fly around to have in person meetings. Hell, they don’t even go into the office anymore. It’ll be many years until airlines see 2019 levels of traffic again. Here’s a close look at the chart.
American Airlines doesn’t have a monopoly on bearish setups, however. It’s just as clear with the friendly skies of United:
If you want to explore others, here are the airlines listed in the sectors feature of SlopeCharts:
