No time to travel

Danielle Shay joins CNBC’s Trading Nation to discuss travel stocks. Click the image above to watch the full segment.

The travel industry has been in serious trouble this year. With COVID continuing to be a threat, traveling is the last thing on people’s minds (me included). Because of this, I do not like travel stocks here at all, and I think they will get worse before they get better, despite Americans somewhat getting back to traveling. I’ve heard inklings of people beginning to travel, and it’s possible it may experience a slight bump into the holidays, but at this point, we are two months away from Thanksgiving and the landscape could change substantially by then, so it’s not something I would be on right this moment. Airliners are too weak as are cruiseliners.


When would I buy?
I would consider buying some USO if travel began to pick up, but I still don’t think it’s time. EXPE looks better than the air and cruiseliners but I don’t like to pick stocks based on the “it doesn’t look completely awful” mentality. I like relative strength and consumer trends and neither of those is showing here. The one opportunity I see in travel is an Airbnb IPO. While Airbnb has experienced a loss in revenue as well, Airbnb relatively has held up when compared to traditional hotels, airlines, and cruise companies. There is an argument to be made that perhaps EXPE could benefit from staycations and holiday travel, but I wouldn’t want to put too much capital in it. For traders and investors looking to buy beaten-down stocks, this is really the only opportunity I see – but as I’ve said I just don’t think now is the time. When the time comes, I will stick with EXPE and whichever airliners make it out of this mess, but it is too soon to say which ones those are – but for the long term I’m eyeing LUV and ALK.

Click HERE to watch the full segment.

 

Want more trading education? Follow me here by signing up for my free newsletter, at www.fivestartrader.com, or in my Mastery program which you can find at www.simplertrading.com/profits. You can also follow me on Instagram, Twitter @traderdanielle, or on Facebook.

 

Leave a Comment

Up Next...

Welcome to September

September is here, and its entrance is dashing hopes that September seasonality came early. As of this writing, the Nasdaq futures are down 2.25%, and the S&P is down 1.37%. What’s interesting about the summer pullback is that semiconductor and technology stocks led it lower. This is critical to mention because these are typically the … Read more

Read More

Trading Earnings Induced Short Squeezes Using Butterflies

Trade Review I love using butterflies for low-cost earnings trades! This low-risk trade cost me $155, and I traded this ticker directly to my target overnight, making a triple on my debit. This earnings trade in CHWY had the following: Pre-earnings short squeeze candidate A ticker with an earnings turn around story Extremely low risk … Read more

Read More

Trading Earnings Induced Short Squeezes

Earnings reports can provide trading opportunities, particularly when stocks with high short interest, such as Gap (GAP) and Peloton (PTON). I joined Dominic Chu to discuss my short squeeze trade in PTON, a potential reversal in Paypal (PYPL), a pre + post-earnings trade in GAP, and my pessimistic take on NKE.

Read More

Subscribe Today!

Want my up-to-date analysis, setups, top trading tips, and more? Be a Five Star trader, and join my free newsletter today!

Sign Up Now
all-as-seen-on-logos