Rick Pendergraft's Avatar
Rick Pendergraft
published in Blogs
Nov 09, 2020
Irrational Moves for Airlines Stocks after Election and Vaccine Results

Irrational Moves for Airlines Stocks after Election and Vaccine Results

After former Vice President Biden was predicted the winner of the U.S. presidential election on Saturday morning, stock futures opened higher on Sunday evening. The gains were across the board for the major U.S. indices and they ranged from 1.5% to 2.0%. Then on Monday morning, Pfizer (PFE) announced results from its vaccine trials and they showed a 90% success rate in blocking the virus. This news sent markets soaring higher all over the globe and U.S. index futures jumped anywhere from 4% to 7% on the Russell.

Once the market opened we saw huge moves from certain industries and sectors. There were big moves on both sides as some stocks jumped 15-20% and others fell just as sharply. Investors reacted as if the vaccine was going to be available tomorrow and that everyone in the world was going to rush out to get it.

Some of the biggest movers to the upside were the airlines stocks. I pulled up United Airlines (UAL), American Airlines (AAL), and Delta Air Lines (DAL) on Tickeron in order to check how these companies rated in both the fundamentals and the technical indicators. When I ran the comparison, the first thing that jumped out at me was how the three stocks were doing at midday on Monday.

We see United up 18.69%, American up 17.28%, and Delta up 14.99%. And I get it, the news about an effective vaccine is a big game changer and the first step for life getting back to normal when it comes to traveling and such. But again, the vaccine won’t be available for another few months and even then it’s not like people are going to jump on planes as readily as they did before the pandemic.

If we look at the fundamental ratings for these three companies, there are very few positive ratings—only one for United and two for American. American has a strong SMR Rating and a good Valuation Rating. The only positive for United is the Seasonality aspect. There aren’t any positive ratings for Delta.

All three stocks have poor Outlook Ratings and all three score a 100 in the Profit Vs. Risk Rating and that is the worst possible score. All three also score poorly in the P/E Growth Rating. United and Delta both score very poorly in the SMR Ratings.

The stocks score much better in the technical analysis indicators with all three receiving four bullish signals. United has five bearish signals to offset the four bullish signals. Delta and American both have six bearish signals to cancel out the four bullish signals. All three stocks have bullish signals in three areas—the Stochastic Indicators, the Weekly Trend, and the Bollinger Bands.

The full breakdown appears below, but I personally feel these moves are irrational, knee-jerk reactions.

Related Tickers: AAL
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Mar 07, 2021
4 Tricks Hedge Funds Use to Get Ahead

4 Tricks Hedge Funds Use to Get Ahead

If the stock market were Major League Baseball, hedge funds and institutional investors would be the pros on championship teams while everyday self-directed investors (SDIs) are the benchwarmers in the minors.It’s how they get ahead, and it’s why 90% of SDIs lose money trying to play (invest and trade) in the major leagues. The 4 tricks we discuss below are rooted in one common theme: they all use Artificial Intelligence and algorithms to generate data and ideas.
John Jacques's Avatar
John Jacques
published in Blogs
Mar 22, 2018
A.I. Stock Market Predictions: Head & Shoulders

A.I. Stock Market Predictions: Head & Shoulders

Statistics for the Head-and-Shoulders Bottom Pattern The days where only hedge funds used algorithms to trade stocks are officially over. Now retail investors can use Artificial Intelligence (A.I.  Here’s an example of the algorithm in action: Late last year, Tickeron’s A.I.
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Jul 10, 2020
3 Stocks to Buy if Coronavirus Second Wave Hits

3 Stocks to Buy if Coronavirus Second Wave Hits

By analyzing market trends from the first wave, you can predict behavior for the second. Technology stocks have performed at historic levels this year, but the market is severely overbought.To compensate for that, look at performance during Q1 and Q2, the height of global Covid shutdowns.
Edward Flores's Avatar
Edward Flores
published in Blogs
Feb 06, 2021
How to Become the Millionaire Next Door

How to Become the Millionaire Next Door

The Golden Gate Bridge is always a fixture of these walks too, one of man's most beautiful creations.  As we were walking, at one point she turned to me and said, "Man, I'll never have a million dollars."" My girlfriend is 27 years old and works as a graphic designer, making about $75,000 a year.
Alla Petriaieva's Avatar
Alla Petriaieva
published in Blogs
Feb 23, 2021
Is Ethereum’s Bomb about to Explode?

Is Ethereum’s Bomb about to Explode?

Ethereum’s software is set for an update in October.Until it is finished, participants in the Ethereum blockchain must determine how to delay the difficulty bomb – code that necessitates a steadily increasing amount of computer power to mine blocks and unlock rewards – that is already in place.
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Aug 07, 2018
When Is the Next Recession Coming?

When Is the Next Recession Coming?

However, we also know that economists predicted 22 recessions out of 11 that took place since 1945. Are there real recession signs we should watch for?Indeed, the answer is yes, and here are a few very important ones: The first one is almost obvious and known to everyone – it is the Fed.
Abhoy Sarkar's Avatar
Abhoy Sarkar
published in Blogs
May 22, 2020
Central banks have been buying $2.4 billion in assets every hour for the past two months

Central banks have been buying $2.4 billion in assets every hour for the past two months

Some $17.8 billion has been poured into  bond markets over the past week, the biggest move in more than three months.Around $3.5 billion has been invested into gold, the second largest on record. 
Rick Pendergraft's Avatar
Rick Pendergraft
published in Blogs
Feb 07, 2021
Mid-January Short Interest Report Shows 8 Stocks with Good Fundamentals and High Short Interest
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Mar 10, 2021
How to Start Trading Penny Stocks

How to Start Trading Penny Stocks

Penny stocks have long been marginalized within the professional investment community, oftentimes being painted with a broad brush of simply being “too risky.” Leonardo DiCaprio’s depiction of the penny stock peddling conman, Jordan Belfort, in the Wolf of Wall Street certainly didn’t help.Here are four reasons to start trading them now. Reason #1: Let’s State the Obvious -- Penny Stocks are Cheap A single share of Apple Inc. costs over $350.
Abhoy Sarkar's Avatar
Abhoy Sarkar
published in Blogs
May 08, 2020
US unemployment rate jumps to 14.7%, the highest in series history

US unemployment rate jumps to 14.7%, the highest in series history

The U.S. economy’s employment fell by -20.5 million in April. The coronavirus crisis led to unemployment rate soaring to 14.7% in the U.S, the highest rate in the Bureau of Labor Statistics-tracked series history that goes back to 1948. However, the figures were better compared to several economists'/analysts' forecasts of 22 million job losses and 16% unemployment rate.  Another unemployment measure that includes those who have stopped looking for work as well as those holding part-time jobs for economic reasons also touched an all-time high of 22.8%.