Airline stocks have been taking a hit lately, in part to the declining revenues and profit margins, but we’re don’t care about fundamentals here. All the airline stocks have been getting hit and that explains the deviation here, and so that’s all we’re focused on. We really like buying this pair down in this area. We actually entered this during the week, but the entry has gotten even better since then. We like buying AAL/DAL pair at a price ratio of 0.78 with a target into the 0.83-0.85 area. Should be good for a quick and easy 5% winner, with 8-10% potential for those who hold. Entry Ratio: 0.78 Target Ratio 0.83-0.85 We saw AAL/DAL spread like this back in December and it came back in nicely, we’d expect to see more of the same here. If you look at this chart below, you can see that we don’t get moves of this nature that frequently in this pair. For our entire watchlist, trade alerts, and more check out PAIRx Trader
