UAL daily
UAL monthly
Summary
I want to be clear about this...
Mr Market, 'they', or whatever you want to call it, is playing the same game it did Oct'19'th last year.
Talk of a 'price war', or concerns about 'higher capacity', have seen the algo-bots sell the stock hard.
Keep in mind, EPS was $1.40, slightly above market consensus of $1.34, and the stock initially jumped to the 80/81s. It was only with the conf' call that chatter about a price war and capacity saw the market sell the stock.
I consider this absolute NONSENSE, just like last October.
Earnings were good. The company correctly recognises higher capacity is needed across the mid term to grow the company. This is unquestionably bullish.
The only reason anyone should be bearish the airlines is if they believe the current multi-year economic growth cycle is at/close to concluding, ahead of a recession. For the record, I do NOT see a recession until at least latter half of 2019, if not 2020.
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Technically, the stock is clearly 'broken' in the short term, but it should build a floor soon, probably around the psy' $70 threshold. I'm m/t bullish to giant psy' $100, which is actually still viable before year end, but certainly by mid 2019.
I can understand if the more cautious will favour the 'less turbulant' Delta (DAL). Regardless, with an FPE in the 11/10s, I see UAL as bullish on both a value and growth perspective.
yours... prefers trains.
