While I would always advise to never buy stocks reading 20 on the 14-period daily RSI - I think this ETF is screaming contrarian to the coronavirus concerns. A lot of these airliner names are trading below their intrinsic value from a PV of future cash flow basis. Something to think about.
Thanks for sharing - given we are only beginning to see what a COVID-19 panic looks like globally do you foresee more pain for JETS? I see more job losses, more flight restrictions, more small/budget airline bankruptcies in the next 6 months but I agree with you: lower oil prices and heavy selling of airline stocks makes JETS a buy eventually.
murphycharts
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@arigolden Hi Ari, Yes the airliners are essentially in free fall and no one knows when the selling will end. I believe you are viewing things the right way - I plan on continuing to be cognizant of the issues in the energy sector and will be keeping an eye on individual airliners if/when the opportunity presents itself to go long. No technical indication that the pain is letting up or that we are beginning to bottom. Def staying away for now!
arigolden
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@murphycharts, thanks buddy, I agree with your sentiment as well. I am closely monitoring JETS for airline plays, INN and SVC for hotel plays. No sign of a bottom yet. Likely will play these through 3m call options once they get to extremely oversold levels.