With the Dow industrials making new highs and the Dow transports
pulling back to their lowest levels of the month, traders and
investors have not lacked for prognostications on what this "lack
of confirmation" may mean for stocks as a whole over the next few
But weakness in the transportation stocks also means that
traders and investors have not lacked opportunities to buy markets
to levels where buyers historically have found prices too
attractive to resist.
Airlines stocks have been one area within the transportation
sector where some of the selling has been most aggressive in recent
days, sending stocks to new, short-term lows and technically
oversold territory in many instances.
US Airways Group
(NYSE: LCC), for example, has has closed lower for four days in a
row, the last two in technically oversold territory above the
200-day moving average, and are trading at their lowest level since
climbing back into bull market territory in late January.
The selling in LCC has given the stock a top, 10 out of 10
rating ahead of trading on Friday. US Airways also has a positive
in the short-term of more than 7%.
With a smaller, but still statistically significant short-term
edge of almost 3%, shares of
) have also pulled back to levels where traders have been more
inclined to buy than sell. Jetblue closed lower for a fourth
consecutive session on Thursday, pulling back by more than 2%, and
are trading right on their 200-day moving average. JBLU has been
trading in bull market territory consistently since mid-December,
and has earned "consider buying"
of 9 out of 10.
The last time JBLU was as oversold as it is heading into
Friday's session, with the stock closing lower for multiple days in
a row, trading oversold, and earning "consider buying" ratings was
in mid-January. The four-day sell-off that took JBLU into
technically oversold territory was followed by a rally during which
the stock closed higher for 11 out of the next 13 days.
Another very oversold airlines stock is
Delta Air Lines
). Shares of DAL have closed lower for four days in a row - the
last three oversold - and are trading at new, short-term lows. Like
US Airways Group above, Delta has earned our highest ratings of 10
out of 10 ahead of trading on Friday, and has developed a positive
edge of just under 2% in the short-term.
DAL has been trading in bull market territory since the second
half of January. The stock's recent run into the beginning of
February took DAL to its highest level in six months.
Be sure to read our latest from
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is Editor in Chief of TradingMarkets.com