The market takes money from those who are impatient and gives it to those who are patient.
Being able to trade the market full time require having the patience to allow for the market to make its moves. If we look at the chart for any stock or financial instrument there are two factors, Time and value. Investors must understand the current value and target value and the time that it will take for the move to be complete.
Today we are going to start planning and looking out for the forecast for next week. This will give us a an opportunity to look and plan out trades for the future and look to seeing confirmations next week and entering positions next week without being rushed to enter in the market.
Let’s look at some major movers in the aviation industry to look out for during next week for the greatest trade opportunities.
Delta airlines (NYSE: DAL)
Delta is schedule to release earnings next Thursday on October 10th. We just recently have seen Delta invest $1.9 billion in LATAM Airlines which will increase their investing potential although they have recently been rated poorly be financial analyst. On a short term basis there is some potential for a push back up towards the previous support level.
The strong bullish candle bouncing off the current support shows that it may respect the current price level. We did fall out of the up-trending channel that we were in for the last year.
With the bias of poor earnings this quarter selling some calls above the money would be a great strategy for generating some income entering the next month.
Boeing (NYSE: BA)
Boeing has their earnings on October 23rd. The United States just recently placed tariffs on EU goods specifically the product of Airbus Aircraft manufacturers. Based on the fundamentals we can see potential optimism for Boeing based on the tariffs placed on Airbus.
Technically we are seeing price test up above our trend line and fall below to make another test underneath. This to me is a clear entry for a sell position. Seeing how we are entering the center-point of these two major trend lines the potential for price to drop down towards the support trend line before news is very probable.
Entering a put spread will allow you to enter a position with a bearish bias while still having protection should the stock rise above the trend line.
FLY LEASING (NYSE: FLY)
We had a strong rally with FLY after their earnings in August. We are not going to see our next quarterly earning until November so I would not expect to see so much of a spike movement in price until then. We are most likely going to have very slight and consistent movement over the next weeks following the overall trend of the market.
Coming down towards $18 is the large range that price is currently trading within so there is plenty of room to the downside for price to create a new support. We will need to create a new support level prior to testing and making a new move upwards.
LOCKHEED MARTIN (NYSE: LMT)
Similiar to Boeing on the tecincals we see a strong sell off with a short bullish pullback. We have been in an uptrend all year with Lockheed and if we draw a fibonacci retracement on the full movement of the year we can see how we are currently trading in the middle of the range between 0-.236.
Lockheed earns a great portion of revenue from government contracts and with the tension of conflict from North Korea testing missiles on a daily basis we have seen a consistent growth in new contracts on the defense side. Long term Lockheed will need a major factors to impact its price to sway it in a different direction.
ATLAS WORLDWIDE (NYSE: AAWW)
Atlas has been selling off since our August earnings. We have been unable to break up to make any new highs and have been making lower highs and lower highs trending underneath out resistance. We are currently sitting right on the line of a Fibonacci Channel drawn from a few weeks back.
Should price respect this current level for the next few days then we can look to see a potential move upwards. These next earnings are going to be a major playing in determining if we continue on the down trend below the $25 price level or we see some bullish divergence. The final quarter tends to be higher for cargo as the holiday season encourages more spending and shipping of goods.
With heavy competition from other carriers such Atlas will need to make active changes towards gaining more market share in the cargo space.
Overall we have a lot of great stocks to look at for the week and great fundamentals to take into consideration. Keep in mind that investing carries implied risks and the trade ideas posted on this website are simply opinions and not meant to be used as financial advise.
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