LUV (Southwest Airlines) offers an objective short entry on today’s bearish engulfing candlestick & divergent high with a maximum suggested stop over 57.00. Daily chart below.
LUV daily Feb 11th
I also like UAL, DAL, AAL, ALK, & SKYW as short trades here, preferring a ‘shotgun’ approach to shorting the sector (spreading the bets among most or all of those), especially since the only direct-play Airline Sector ETF was discontinued several years ago. However, one can get partial exposure to the airlines by trading the following Airline Sector ETFs:
U.S. Global Jets ETF (JETS): Focuses heavily on U.S. passenger carriers (roughly 70% of assets), including Delta, United, and American, with a 0.60% expense ratio.
Themes Airlines ETF (AIRL): Tracks an index of companies with business operations in the airline industry.
Defiance Hotel, Airline, and Cruise ETF (CRUZ): Offers broader exposure to the travel and leisure industry.
iShares Transportation Average ETF (IYT): A broader fund containing airlines, railroads, and trucking companies.
Charts of the other major airlines will follow separately, either in a new homepage post(s), the comment section below this post, and/or in an upcoming video.