I found an airline stock that is pulling back to its 50-day moving average… And it could be the right time to jump in. I like the stock… I like the sector… I like the industry… With summer around the corner and people already starting to travel, this stock could be primed for a breakout.
This airline is the second largest in the world in terms of the number of scheduled passengers. With a fleet size around 1,100, this name is set to benefit as the travel boom continues to expand. It’s already started its return to normal by introducing snacks on flights on April 1, and it also recently added beverages.
Airline stocks slipped on Tuesday because of vaccine supply worries. Travel stocks are counting on vaccinations and for restrictions to be lifted so folks can travel. Although the J&J vaccine halt was a setback, our recovery is expected to continue.
Global stock markets are higher today as investors believe inflation to be more stable. Tech and consumer stocks helped the S&P 500 rise to new highs on Tuesday.
The 10-year U.S. Treasury bill slid down to 1.62% on Tuesday and the bond market continues with almost nonexistent volatility. Remember that there’s a strong correlation between the bond and stock markets as investors watch for high inflation.
In today’s video I’ll go over whether the global economy is heating up or cooling off… my concern about volatility in the bond and stock markets… whether U.S. stocks are topping out long term or setting up for pullback… and one stock that’s pulling back in an airline industry that’s ripe for profit.