Here's what happened yesterday: Delta Air Lines (DAL) reported operating performance for September 2017 and somehow market loved it and the market reaction is there for everyone to see. The stock shot up 6.6% making it the biggest one-day percentage gain since January 2015. Here's how it looks on the weekly chart as of today:
It was not just Delta Airlines stock but all major airline stock rallied yesterday:
1. American Airlines AAL Up 5.82%
2. Southwest Airlines LUV up 4.5%
3. Alaska Airlines ALK Up 4.05%
4. JetBlue JBLU Up 7%
Delta Airlines stock has not worked out as envisaged in the past. It broke out and then succumbed and there is bad feeling among trading community
When will Delta Airlines stock take off....everything in place now and even Oil has crashed
(waiting for breakout) pic.twitter.com/FEtCm7a3JN
— Deepak Singh (@smarket) June 28, 2017
Airline stocks have underperformed a lot in 2017 now after giving many false starts and there is a big chance that yesterday move might be dismissed again.
Even though, Airline stocks have frustrated investors over last two years there is something different about yesterday's move and I will not be surprised if few months down the road - we look back and see today as the day of turning point for Airline stocks especially Delta Airlines. I know it's not plain black and white like other Price Action but still worth looking.
Read more: Price Action
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers