Not enough LUV

23 בינו׳ 2022

Airlines are not doing well still despite a bunch of propping up by various institutions. These earnings are going to be absolute garbage and the broader market is also gonna tank too. I expect a rally to the 44-45 range with a likely rebound Monday in the broader market. After this, there is nothing holding airlines up for the foreseeable future. What bullish catalyst exists for airlines right now? They've been on life support since the get-go and the labour shortage along with Omicron has completely wiped out Q4 earnings for airlines. TA-wise, it's rejecting the 500 day MA on the daily and is looking week on the RSI and MACD. Price action suggests serious bearish sentiment in the short term. I also put up a Fib retracement from the COVID crash and it's lining up well. Basically this area being rejected is another piece of evidence for serious downside. Also an evening star on the weekly confirmed. Puts and shorts ?