It’s possible that it’s time to sell airline stocks. Though TSA checks show that U.S. travel topped 2019 levels over the July 4th holiday weekend, Piper Sandler’s Craig Johnson told CNBC’s “Trading Nation” on Friday that the group’s technical setup is flashing danger warnings. The U.S. Global Jets ETF (JETS) broke below an upward support line and its 50-day moving average on a chart, both concerning indicators for Johnson, his firm’s senior technical analysis analyst. The fact that 2021 has already seen the highest number of rowdy passenger events in 25 years and is only halfway through does not bode well for airlines, according to Johnson. “From my perspective, this rebound trade has earned easy money,” he said. “I believe it is now time to withdraw funds from JETS.” Southwest Airlines, according to Boris Schlossberg, managing director of FX strategy at BK Asset Management, may still have some fuel left in its tank in the same “Trading Nation” interview. “They’re the industry’s low-cost leader. They have the best balance sheet, and I believe they’re building a very, very strong brand in the long run “According to Schlossberg. “They are, indeed, experiencing cancellations. They are experiencing delays, to be sure. But, unlike Delta and United, they are standing up and seeking to fill capacity right now.” Delta and United Airlines did not respond to a request for comment from CNBC right away. Because consumer travel is more dependant than corporate travel, Schlossberg predicted Southwest to gain market share from its competitors as consumer travel recovers. “That’s the one JETS trade I’d get long and keep long for the next 18-24 months,” he stated. On Friday, Southwest shares closed at $53.66, down less than half a percent. JETS concluded the day at $24.50, down half a percent. Disclaimer/n
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