Airline ETF sharesThey are good option
Airline ETF shares were created recently. These exchange traded funds allow to trade airline sub-sector of more broad transportation sector of US or international stock markets. |
| Copa Holdings PLC, | 7.7% |
| Alaska Air Group Inc, | 7.2% |
| TAM SA, | 7.1% |
| US Airways Group Inc., | 7.0% |
| JetBlue Airways Corp., | 7.0% |
| Lan Airlines SA, | 6.9% |
| United Continental Holdings Inc., | 6.8% |
| Hawaiian Holdings Inc., | 6.6% |
| Republican Airways Holdings Inc., | 6.3% |
| Ryanair Holdings PLC, | 6.3% |
This fund also holds shares of international airline companies. Unfortunately this fund is not very actively traded by another etf traders and investors and so liquidity is poor. Although it is not so big issue when you trade ETF shares, it is something to think about when you want to trade airline sector ETF
Chart of FLYX
I personally prefer to use FAA to track this sub sector and I have FAA in my list of ETF shares I trade and analyze regularly.
ETF Trading strategy for these funds
Airline ETF is part of major Transportation sector. As you can know already my major ETF Trading strategy idea is to use relative strength or weakness for ETF trading.I like to compare FAA with another sector ETF - Transportation exchange traded fund with symbol IYT and also with broad index ETF for S&P500 index - SPY.
Check situation on charts below:
As you can see on charts global situation was not very bullish in last weeks. But it was possible to spot that FAA - airline ETF - was weak already before weakness of global US markets. Such stock chart analysis of relative weakness provided valuable info.
It was much better to sell short airline ETF shares few weeks ago then to go long them.
Todays situation is not so clear. Major market seloff is already behind us but situation does not provide clear signals. Global markets are bearish so it is not wise to be brave and buy any of these exchange traded funds now.
There is possible to see some strength of FAA comparing to IYT or SPY index ETF. But as all these shares are under their 50 days moving averages (green) it is too early to say if FAA will be good buying opportunity in next days or weeks.
Stock market trading tip
Check Energy ETF situation
Investors tends to take attention to global
prices of oil.
This price is very important for profitability and whole business of airlines. So it is obvious that when price of oil is high - like above 100 USD - then investors do not prefer to buy airlines and these shares struggle in performance. Such situation often could provide very good short selling opportunity.So it is good to know what is current situation with Oil ETF shares and generally in space of commodity exchange traded funds.
Return from Airline ETF groups back to ETF Trading
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