As the capital markets delve even deeper into the holiday season, short-term trading opportunities present themselves. One of them is increased holiday travel, which should prop up ETFs that focus on vacationing.
Amid the hustle and bustle of the holidays will be increased air traffic. This year could present record numbers, according to the Transportation Security Administration.
“Major U.S. airlines and the Transportation Security Administration (TSA) said Monday they expect record air travel over the Thanksgiving holiday air travel period,” Reuters reported.
The increased travel was apparent last year as the transition to a post-COVID world was settling among the general public. Individuals have become comfortable being in closer quarters with one another. So increased travel was one of the trends that should persist through this year.
“We expect this holiday season to be our busiest ever,” TSA Administrator David Pekoske said in a statement, per a Fox Business report. “We are ready for the anticipated volumes and are working closely with our airline and airport partners to make sure we are prepared for this busy holiday travel season.”
That increased travel expectation will be forthcoming with the Thanksgiving holiday getting underway. To get a tighter grasp of the numbers, TSA establishes the Thanksgiving travel period as Friday, Nov. 17 up until Tuesday, Nov. 28.
“During the 12-day period, TSA expects to screen 30 million passengers. Historically, the three busiest travel days are the Tuesday and Wednesday prior to Thanksgiving and the Sunday afterward,” the TSA added. “TSA is projecting to screen 2.6 million passengers on Tuesday, Nov. 21; 2.7 million passengers on Wednesday, Nov. 22 and 2.9 million passengers on Sunday, Nov. 26, which will likely be the busiest travel day.”
One ETF for Holiday Travel Exposure
While traders can look to individual stocks to capture the profit potential of increased travel and vacationing for this upcoming holiday season, there’s an easier solution: the Direxion Daily Travel & Vacation Bull 2X Shares (OOTO). The fund focuses on returning 200% of the BlueStar Travel and Vacation Index.
The index exposes traders to global commercial airlines, hotels, resorts, resort casinos, travel agencies, online travel booking sites, hotel REITs, cruise lines, theme parks, and ski resorts. With its double leverage, traders can look to amplify their returns. That amplification also applies to losses, so only seasoned investors should use these tactical strategies.
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