Thursday 10 December 2015

2pm update - strength in airlines

Whilst the broader market is holding moderate gains of 12pts at sp'2059, there is notable strength in the airlines. Delta (DAL), and United (UAL) are higher by 3.2% and 3.9% respectively. It is especially notable that Delta is close to breaking a new historic high, whilst UAL is on the edge of breaking out of a trading range.


DAL, daily



UAL, daily



Summary

*...as conditions remain choppy... I'll try to highlight a fair few individual stocks into next week.
--

Whilst the actual Transportation index remains a mere 3-4% from the Aug' lows.. there is some distinct upside power in the airlines.

No doubt consistantly low oil/fuel prices are really helping improve margins... now its a case of whether those planes are filled with passengers.

*I favour DAL, it is a far more stable stock than UAL, and arguably.. a much better balance sheet.