By: Steve Smith
The airline stocks had been the first to decline as the Covid19 virus started spreading beyond China and they have now been the hardest hit. The “US. Global Jets ETF (JETS)” is down some 32% in the past three weeks, which is nearly three times worse than the broader “SPDR S&P 500 (SPY)” 12% correction over the same time period.
While there is no sign travel will return back to normal anytime soon, in fact, it will probably get worse in the coming weeks, it seems investors might be trying to find a glimmer of bluer skies for the sector.
In trading, the saying “it’s always darkest before the dawn” translates to “reversals often occur when traders and investors are most afraid they won’t.
In real-time, of course, it’s extremely difficult to know when those moments are occurring, and it’s even more of a challenge to put on a trade. But when prices reach levels that allow you to clearly define risk and potential reward, it can be easier to make an objective decision.
Airline stocks look like they are… Continue reading the rest of this important investor information at StockNews.com