Airline Market Update – 20 July 2021

The week started off strong with a few companies’ stock prices jumping a gap downwards. As the Volatility index spiked up, many stock prices experienced a significant impact. Airline stocks being one of the major players to be affected leaving just a few to see gains.

Looking at the market after the dust has settled allows for a calm perspective. The few stranglers who managed to see positive % change today were Virgin Galactic Holding (SPCE), FedEx (FDX), Aerojet Rocketdyne (AJRD), and Fly Leasing (FLY). Let’s look at some of the highlights of yesterday’s trading day.

Airline Biggest Movers

Mesa Air (MESA) -7.08%

Mesa Air had the greatest percent loss on the 19th of July between the other airline stocks with a over 7% drop. As we look at the technical portion, we can see how the price was holding its range as it was testing the resistance level directly above. The same resistance which was the support just a few weeks back. Now that price has gapped down into the center of this range we can look to see what new ranges price begins to test.

Some of the other top percent change decrease for the day included , GOL Linhas Aereas ADR (GOL) at -6.58%, Hawaiian (HA) at -5.92%, SkyWest (SKYW) at -5.91% and United Airlines Holding (UAL) at -5.54%. Slowly coming down from the recent highs followed by a start of the week in red is not one that long term investors are enjoying. For those holding long a sigh of relief with some potential support levels would help to push price up.

Greatest Trading Volume

American Airlines (AAL) 63.98M

With little surprise the legacy carriers remain in the lead when it comes to trading volume. For as long as we have been watching the airline market we typically see the same few names sitting in the top levels of trading volume. A lot can go into it such as they are more well known as compared to other airline stocks. These stocks are seen more in mutual funds and ETF’s and other financial products as well.

Considering they are more commonly seen in the market it helps increase their trading volume. This can be a significant factor when it comes to day trading or options trading as volume can have a significant impact on the volatility of the move. Typically speaking where there is a bigger move it was supported by volume increase as well.

Some of the other stocks with greatest trading volume for the day include Delta Air Lines (DAL) at 27.07M, United Airlines Holdings (UAL) at 26.44M, JetBlue (JBLU) at 16.57M and Southwest Airlines (LUV) at15.48M.

Biggest after hours movers

In the after hours market we can see that our greatest loser also turned out to be the greatest comeback story. Mesa Air (MESA) recovered +2.66% in the after hours market. With the runner up behind being Spirit Airlines (SAVE) making a recovery of 2.12% in the after market trading hours. One can hope that an optimistic after hours can then lead to a following positive start of the day.

With the summer months ending and school starting, travel may start to slow down. Leaving some time before the holidays where we can potentially start to see the increase in travel demands. With a greater percentage of individuals vaccinated there will be a greater confidence in people to start traveling this year considering they may have skipped last year’s travel plans.

Some of the other biggest movers in the after-hours market include Allegiant (ALGT) at +1.75%, Hawaiian (HA) at +1.52% and Southwest Airlines (LUV) at +1.24%

During the open trading hours with so much changing so quickly it can sometimes be difficult to see the bigger picture. Our head is focused in the moment and making sure we are present as we should be. You could be occupied running a business or over at the office unable to spend time to focus in the market.

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