At Simpler Stocks, I have been recommending a few airline stocks the past week. I have gotten more questions about buying the laggards. I think the “easy trade” is to buy the leaders. Only three look great. Let’s look at the comparison charts.
United Continental Holdings Inc (UAL) started the “bull party”, breaking out before American Airlines Group Inc (AAL) and Alaska Air Group Inc (ALK).
Note the “thin zone” of little resistance, designated by the Purple arrows.
On the other hand, I had more subscribers wanting to buy Delta Air Lines Inc (DAL) and JetBlue Airways Corporation (JBLU). There is no doubt they could go up, but note the multiple areas of resistance on the way up. They are not the “easy trade”.
The key is how to deploy your resources. I want to find the trades that can work the quickest, and also have the least resistance on the way up.