Airlines Sector Plunges 125.4 Points or 2.2 Percent
SECTORS
The Airlines sector plunged 125.4 points or 2.2% to 5,532.3.
The Sector fell for a second day on Tuesday, a 2-day fall of 2.7%.
Since open its volatility (highest price minus lowest price/lowest price) of 3.3% was 1.1 times average daily volatility of 2.9%, up from 2.8% on the previous trading day and 3.1% on the day before. This suggests a trading opportunity between peaks and troughs. The Sector traded between an intraday low of 5,482.5 and a high of 5,661.3.
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Change % 2-day 1-month 6-month Airlines sector -2.7 -5.9 -23.4 Dow Jones Industrial index -1.6 -0.1
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TECHNICAL ANALYSIS
Price Trend: the Sector plummeted 3.4% in the last week and slid 5.9% in the last month.
Relativities: in the global market of top 5000 stocks by MCap, 54 sectors and 77 indices, the Sector has a 6-month relative strength of 30.8 indicating it has underperformed 69.2% of the market. (Rank 3614 out of 5113)
Today its percentile rank in the world's market was 22.8. (Rank 3842 out of 5113)
Moving Average (MA): the Sector value to 200-day moving average ratio is 0.85, a bearish indicator. In the past 200 days this ratio has been under 0.85 thirty-nine times suggesting further downside.
The Sector is trading below both its 200-day MA and the 50-day MA. Further, the 50-day MA of 5,813.3 is lower than the 200-day MA of 6,514.8, a bearish indicator.
The 200-day MA has decreased to 6,514.8, another bearish indicator.
Rises and Falls: falls outnumbered rises 20:11 or 9 to 5.
PRICE VOLUME DYNAMICS
Volatility: the Sector traded between a 13-day low of 5,482.5 and a high of 5,661.3. Intraday volatility (highest price minus lowest price/lowest price) of 3.3% was 1.1 times average daily volatility of 2.9%.
Price Dynamics: the Sector is at a discount of 35.9% to the 52-week high of 8,634.0 and a premium of 4.3% to the 52-week low of 5,304.7.
Volume and Turnover Period: the average turnover rate of the Sector is 156.9% or an average holding period of 7 months.
SHAREHOLDER RETURNS
Trailing One Week: the value of US$1,000 invested a week ago is US$966 [vs US$985 for the Dow Jones Industrial index] for a capital loss of US$34.
Trailing One Month: the value of US$1,000 invested a month ago is US$941 [vs US$986 for the Dow Jones Industrial index] for a capital loss of US$59.
Trailing One Year: the value of US$1,000 invested a year ago is US$659 [vs US$1,075 for the Dow Jones Industrial index] including a capital loss of US$344 and dividend reinvested of US$2.
$1000 1-month 6-month Airlines sector $941 $767 Dow Jones Industrial index $986 $1US,011
RELATIVE VALUATION INDICATORS [RVI]
AIRLINES SECTOR vs DOW JONES INDUSTRIAL INDEX [DOW JONES INDUSTRIAL INDEX Average in Brackets]
Better than DOW JONES INDUSTRIAL INDEX Average: P/E of 10.0 [13.2].
Worse than DOW JONES INDUSTRIAL INDEX Average: Return on Equity of 10.6% [15.2%]; Return on Assets of 2.7% [3.2%]; Debt to Equity of 1.8 [0.9]; Total Liabilities/EBITDA of 39.0 [5.9]; Yield of 1.5% [2.8%].
BULLISH SIGNALS FROM TOP THREE RANKED STOCKS (VI or Volume Index in brackets; 1 is average)
[Ranked from the top three out of 34 stocks in sector; sector average in brackets]
AMR (AMR.N) surged 8.7% in strong trading with open interest rising 32.3% to close at 61.10c. 1-day price rise of 8.7% [1st; -2.2%]. 1-week volatility of 127.4% [1st; 6.2%].
Alaska Air Group (ALK.N) strengthened 0.2% in strong trading with open interest rising 2.2% to close at US$70.34, weekly and monthly trend remains strong. Its six-month relative strength (or price close today/price close 6-months ago, then ranked by percentile in the entire market) is 89 [3rd; 30.8]. The ratio of price to 200-day Moving Average Price (P/MAP) is 1.1 [2nd; 0.8]. The stock rose for a third day, a three-day rise of 3.6%.
JetBlue Airways (JBLU.O) soared 19.4% in the past month to US$4.92.
China Southern Airlines (01055.HK) rose 4.0c (or 1.0%) to close at HKD4.0; its six-month relative strength of 90 is the second highest among rising stocks. Price/Earnings of 1.58 [1st; 10.0].
BEARISH SIGNALS FROM BOTTOM THREE RANKED STOCKS (VI or Volume Index in brackets; 1 is average)
[Ranked from the bottom three out of 34 stocks in sector; sector average in brackets]
Among the heavyweights, the steepest fall in MCap took place in Delta Air Lines (DAL.N) where Mcap fell US$431.5 million.
United Continental Holdings (UAL.N) had the steepest fall, dropping US$1.22 (or 5.9%) on firm volume (VI of 1.3) to close at US$19.56. Third lowest fall by MCap of US$403.5 million; MCap of US$6.5 billion [3rd; US$3.7 billion]. Price/Earnings of 25.57 [2nd; 10.0].
Southwest Airlines (LUV.N) fell 27.0c (or 3.2%) to close at US$8.16; its six-month relative strength is 25 which means it is trailing 75% of stocks. The stock fell for a second day, a two-day fall of 3.3%. Yield of 0.3% [1st; 1.5%]. .
WestJet Airlines (WJA.T) dipped 9.0c (or 0.8%) to close at CAD10.81; its six-month relative strength is 25 which means it is trailing 75% of stocks.
Among stocks in significant downtrend the fall was the steepest in Copa Holdings Class A (CPA.N) declining US$2.05 (or 3.3%) to close at US$59.45 (down 7.2% for week and 8.0% for month).
Among stocks in significant downtrend the fall was the third steepest in Qantas Airways (QAN.AU) declining 5.0c (or 3.2%) to close at $1.535 (down 5.2% for week and 5.0% for month).
DESCRIPTION
The sector comprises 34 stocks. Total MCap of the Airlines sector was US$124.2 billion on December 13.
Currency Conversion: US Dollar USD1= US$1.0 [or US$1= USD1.0]. US$1 = 100c.
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