LIVE AT 4 PM ET: HOW I’M COMBATTING INFLATION
If you’ve been paying attention to airline stocks, you’ve probably noticed something extraordinary — they’ve been flying high for darn near six months now.
We’re talking about massive moves across the board…
United Airlines (UAL), Alaska Air Group (ALK), Delta Air Lines (DAL), and others are up 75% or more in just the last five months — in fact, UAL is up over 200% since early August as of this morning!
So, what’s driving this astonishing rally — and is there still room to climb?
The Case for Airlines
After years of turbulence caused by the pandemic, airlines seem to have finally found their wings. Increased travel demand, better operational efficiency, and the stabilization of fuel costs have all played a role.
But it’s not just about getting people back on planes — it’s about profits. Airlines have streamlined their operations, leading to improved margins and better-than-expected earnings.
United Airlines stands out as a key player in this rally. As I mentioned above, this stock has now surged over 200% since its low during last summer’s pullback.
But it’s not alone — Alaska Airlines and Delta are showing similar strength, reflecting broad momentum across the Industrials sector. The market clearly loves what it’s seeing, rewarding these companies for their post-pandemic strategies.
But here’s the question every trader is asking..
Are these stocks too hot to touch? Looking at United’s chart, it’s tempting to think so. A 200% run in a few months is, frankly, insane.
But it’s also a warning flag for traders. The risk-reward balance here feels lopsided — chasing these stocks now could be asking for trouble.
That said, a short position might be equally dicey.
Airlines have shown they can defy gravity, and betting against them while travel demand remains strong could turn into a costly mistake. For now, the smart play may be to wait for a pullback — if we get one.
What’s Next?
The broader question is whether these stocks can sustain their meteoric rise. With travel demand likely to remain robust in 2025 and operational improvements continuing to drive profitability, there’s a case for further gains.
However, risks like rising fuel costs or an economic slowdown could derail the rally.
For now, I’m keeping an eye on levels. For United, $120 is a key resistance point. If it breaks, we could see another leg higher.
The airline rally is one of the biggest stories in the market right now, but don’t let FOMO — fear of missing out — push you into a trade that doesn’t make sense.
Patience is your friend — and in a sector as volatile as this one, timing is everything. As always, keep your risk in check and trade smart.
Stay tuned, and I’ll keep you updated on any opportunities that take flight.
I’ll see you in the markets.
Chris Pulver
Chris Pulver Trading
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. A Workaround for Inflation
Quick update…
I’m live right now for “Final Hour,” and then at 4 p.m. ET, I’m ready to reveal a straightforward weekly trading strategy designed to help you target around $1,000 (on a $5k stake) every single week.
With inflation still sucking cash out of the bank accounts of everyday Americans, this is my way of helping regular folks weather the storm.
There are no guarantees on profits or losses, but now’s the time if you’ll be joining me live.
