“We can see relative performance turning up in July but peaking in September. It has been drifting slowly lower ever since. To combat this, investors should require that a full plate of technicals – from trendlines to volume to momentum – line up before jumping in,” reports Michael Kahn for Barron’s. “The airlines group is also in position for a breakout but in this case it is a resistance ceiling and not a trendline. And also unlike the broader Dow Transports Average, the Dow Jones U.S. airlines index is already trading above its 200-day moving average.”
Additionally, the lower fuel price outlook could also support the airlines as well. While transportation sector ETFs may provide a small exposure to airliners, investors can also take a look at the U.S. Global Jets ETF (NYSEArca: JETS), the only dedicated airline ETF on the market today, to target the global airline industry. [Familiar Catalyst for Airline Stocks, ETF]
iShares Transportation Average ETF
