Takeaway

The presenter argues that recent pullbacks in airline equities, specifically JBLU and LUV, represent a clear buying opportunity. He is actively adding to long positions, viewing the current weakness as another iteration of a profitable trading pattern driven by moves in Crude Oil that has worked for the past 18 months.

What the presenter said

• Pullbacks in JetBlue (JBLU) and Southwest Airlines (LUV) are creating new trading opportunities. [00:00]
• The speaker notes that JetBlue has been a successful trading vehicle for him for about a year and a half, with numerous buy and sell opportunities. [00:05]
• He is currently adding to positions in JetBlue around the $4.80 level, expecting a bounce and higher prices. [00:26]
• Southwest Airlines presents a similar scenario, with the presenter adding to positions around the $39.64 level in expectation of a bounce. [00:43]
• The presenter identifies Crude Oil price movements as the primary driver creating these trading opportunities in airline equities. [00:56]

Trade ideas

• Instrument: JetBlue (JBLU)
  • Direction: Long
  • Entry: Around 4.800
  • Target: Towards previous highs around 6.500; described as "a lot higher than current levels."
  • Stop: None stated
  • Horizon: Short-term
  • Conviction: High
• Instrument: Southwest Airlines (LUV)
  • Direction: Long
  • Entry: Around 39.64
  • Target: Towards previous highs around 52.50-55.00.
  • Stop: None stated
  • Horizon: Short-term
  • Conviction: High

Levels and data cited

• JBLU Support: 4.800 (Current entry/add-on level)
• JBLU Resistance: 6.500 (Previous high, implied target)
• LUV Support: 39.64 (Current entry/add-on level)
• LUV Resistance: 55.00 (Previous high, implied target)