Pre-Market numbers are showing some strength today ( 12th Sep, 2019) as S&P 500 Futures are sitting at bout 0.25% gains at around 09:05 A.M.
Part of being a trader is understanding what is going to work best for you in your trading style. I enjoy trading the start of the day.
I sit down at around 8 am in the morning which is one hour and half before the market opens up. This gives me plenty of time to be able to get some coffee, read a few articles on seeing what current events are occurring in the world that maybe I was not aware of.
During this time I am looking at all my open trades. I am taking a very analytical approach and monitoring how to proceed with the current trade for the day. I go through and re analyze ever trade that I am in to monitor how the price has behaved the day before. This usually aids my ability to be able to have a better idea of how the market will react today.
As the morning bell rings I have my eyes looking for key factors which I have defined for the stocks I am trading. I look for confirmations on my strategies to either close or open new positions.
For a list of confirmations that I use when trading feel welcome to check out my Trading Psychology Guide where I outline the steps I take before entering a trade.
Part of understanding your strengths means that maybe you do your best analysis on companies late at night. My mentor personally recommends that one does their research and analysis when the market is closed. This gives your the time to be able to take in what has happened on the last trading day without feeling rushed.
When you are trying to analyze a stock while the market is open and trading the price of the stock can move dramatically which can alter the direction of your analysis mid-thought. This can lead to you feeling conflicted on the trade idea and not taking the trade due to you not being confident in the movement.
Keep in mind this is my personal input when it comes to trading monthly options. Since we are trading with a large time frame it is important that one has patience and does not try to rush certain movements in the market to happen before they are due. Often time investors try to determine a change in direction of price or a reversal which means they are trading against the current trend.
This type of entries can be extremely risky as you are trading based on the idea that price will reject its current momentum and reverese in direction. If we go back to our Science studies understanding Newtons Laws in Motion, then we know that matter in motion will remain in motion unless acted on by another.
The same ideas and concepts apply when trading financial markets. A stock in motion will remain in motion unless acted on by another factor. So if earnings are strong and Profits for the company is growing than one can assume that the price of the stock will continue to rise unless there is something that comes into the formula that halts its progress or just maybe slows down the progression.
Airlines Hold the Climb
Just about every major commercial airline has seen significant gains over the last week. We have been able to see price skyrocket across the board for commercial airlines.
Lets just take a quick look at three of the fastest mover from this last week. There has been some major spices that have played out over the last week as price was seeing little movement and finally broke out of its consolidation zone.
We are going to quickly look at Hawaiian Airlines (HA), American Airlines (AAL), and GOL (GOL) just to get a brief idea of how the stock has been behaving over the last few weeks.
Hawaiian Airlines (HA)
Hawaiian Airlines (HA) has seen a massive growth of over 17% over the last week and continues to show strong numbers leading the coming weeks.
They had a rough year with losses getting close to 30% in market revenue. For those that were able to take advantage of the exponential growth that HA experience over this last week that congrats to you!
On the Technical Analysis aspect of Hawaiian price has down trending in the channel drawn above. As price broke out of the range and tested on the outer band we see a rise in buying volume on the bottom of the chart and as a result Hawaiian Air climbs up. Now after having this massive rally will we see some resistance at the current price level before continuing the climb or is it time that we see a bit of a correction on that movement.
Hawaiian Air has been patiently waiting for the delivery of B737MAX as well to their fleet. On the positive note they have taken action to open new routes on the west coast and have shown to have excellent rating from the flying public.
American Airlines (AAL)
American Airlines (AAL) one of the legacy carriers here in the United States has gone up close to 8% over the last week and has done 16% growth over the last month. Many investors really like the growth that AAL has been able to sustain over the course of its life time.
Coming down to the low of just under $24.50 we have seen that there has been a change in direction towards creating a new high. Price is currently experiencing a bit of resistance at the $30 price mark and will need to see strong volume to support the upward movement into new highs above its current resistance levels.
American has experienced its turbulence just like all the other airlines over the last few weeks with tension in the aviation industry with Boeing taking the headlines. We will have to wait until OCT 25th for the next release of Earnings for American Airlines.
GOL AIRLINES (GOL)
Lastly GOL Linhas Aereas Inteligentes or just (GOL) for short has had an incredible year of growth. GOL is a new Brazilian Air carrier. Over the last 52 weeks they have gone from trading at $4.43 to pushing up towards above $23.
Similar to how price reacted back in late June we are seeing price somewhat stall out at between $16-18. After seeing the massive red bearish candle form near the top of the range we may see price make one more move down to test near $16 as we see how trading volume has slowed down in the last few days. GOL although has strong potential for growth will need to some buying action to support the move up.
GOL operates a very young fleet. Travel in South America is rising as more airlines are seeing the opportunities that lie with offering affordable fairs to routes within South America. Delta Parent company owns the GOL airlines which is very attractive from the investors side.
With Delta in the background of GOL we understand that the same management team and policies that have been put in place that have brought Delta to the success that they have seen in their airline are also being implemented into GOL airlines.
This brings light to investors eyes as we have been able to see the incredible success that Delta has been able to achieve over the course of their lifespan.
Overview
Many Investors are being tugged by the fear of a recession and another stock market crash and in spite of those fears the market continues to push up against the odds. Last week with the inverted yield curve signallying a potential reversal everyone rushed to the hills in fear.
Sure enough the market had its own decisions made and so far September has been a strong start to the fall season. If we can keep it up and hold this altitutde is something we will have to stick around to fine out.
As a reminder I am not suggesting that you directly invest with any of the stocks that I have mention. These are the companies that I am currently looking at for gaining income on by using Options Trading Strategies. Options trading offers the ability to be able to trade the movement on stocks without having to own shares of the company.
Options trading can be extremely risky as the potential to loose your entire investment is possible. Educating yourself in strategies to protect your capitol is essential for those who wish to trade Options.
I am working on creating tools and videos that would help explain and teach how I use options to trade U.S Stocks regardless of the current market conditions. To get more info on the Options trading Strategies and ideas on U.S. aviation related stocks make sure to leave your email below to be apart of our online community. As always thank you for your time and happy trading.
Air Market Group 