Trade Ideas Newsletter 07/18/2016

AAL is showing significant strength right now

Based on the analysis above in AAL, traders should determine that their portfolio can handle the additional risk from a new position. Also be sure that AAL is not significantly correlated with your existing positions. Lastly, experienced traders never ignore how a new addition relates both to the overall market conditions as well as their existing account. For example, check the S&P 500. Is it trending or stationary recently? Has it moved up or down though key levels? Be sure to matvh up your trading actions on AAL with the overall market so you are fighting the crowd.

CHART

Currently the important sentiment levels, evaluated by Traders For Wealth, have shown an increasingly positive bias toward AAL. Also, the price action in AAL has been moving up a lot. This is a strong sign for a potential upside breakout. Traders should view this as a bullish trade and make sure it aligns with the overall market mood, and their current positions.

American Airlines Group Inc. (AAL)

American Airlines Group Inc. (AAG) is a holding company whose primary business activity is the operation of a network air carrier through its subsidiaries, American Airlines, Inc. (American) and its regional subsidiaries, Envoy Aviation Group Inc. (Envoy), Piedmont Airlines, Inc. (Piedmont) and PSA Airlines, Inc. (PSA). The Company has hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York City, Philadelphia, Phoenix and Washington, D.C. Together with its regional airline subsidiaries and third-party regional carriers operating as American Eagle, the Company’s airline operates an average of approximately 6,700 flights per day to over 350 destinations in approximately 50 countries. The Company operates approximately 940 mainline aircraft and is supported by its regional airline subsidiaries and third-party regional carriers, which operates an additional 587 regional aircraft.