Let's start with the airline stocks first - a sector that the regular readers of this blog know that I have been really bullish on the last few weeks. LCC has probably been my most traded stock this year, and I have also had positions in AMR and UAUA during this time period. In fact, heading into tomorrow, I hold a position in LCC. Airline stocks, generally speaking, broke out on Friday and are looking good to run some more.
Leading the way on Friday was UAUA. I had put up this set up last week too calling it a buy if it crosses 16. I somehow missed the move but I hope some of you readers were able to profit from it! It did breakout after 16 and the volume was good too. Clear skies up ahead! Sorry, couldn't help it :)
LCC was another stock that I had kept posting about. 7.20 was the watch point for this point and I did enter it on Friday at this point. It did break through this resistance and is at a 52 week high. I would like to see some more volume come in though in the next couple of days. It had a very bullish volume pattern throughout the month of February. Keep your eye on this one. 7.20 should act as support now.
AMR - Broke through the 9.15 resistance on good volume. Also on 52 week highs and expect it run from here.
CAL - Nice bounce off MA(50). Lagging behind the rest of the airline stocks a bit. Could breakout if it manages to cross 21.
DLTR - Like the pullback on low volume and how the support held. A buy if it manages to break 56.50.
For my thoughts and strategy on the overall market for the week ahead, please see here.
Take care and good luck next week!