Humans are creatures of habit – and history tends to repeat itself.
That’s been the secret of my continued success as a rules-based trader. I have developed many systems that historically produce profits 90% or more of the time.
One of my go-to systems is called the Money Calendar. It’s a powerful scanner that scours up to 20 years of data and reveals stocks that consistently move up or down during a particular time frame of the year. These historic patterns tend to repeat into the future.
And I find lots of them around yearly events like Labor Day.
Historically, Americans tend to travel over this holiday and buy discretionary items like grills, clothes, and Kentucky Fried Chicken.
One of the most consistent trends, though, is airline travel. Many people wrap up their summers with vacations over the three-day Labor Day weekend.
And the Money Calendar is showing me strong historical patterns on three airline stocks right now.
You’ve got just under two weeks to get in.
My Top Three Labor Day Airline Stocks (and Where They’re Headed This Year)
This historic trend is clearly visible in the following three major airline stocks.
International airline American Airlines (NYSE:AAL) has a very compelling pattern around Labor Day. Over the past 10 years, AAL has risen a whopping 8.3% from the 10 trading days prior to Labor Day through seven trading days after. 90% of the trades were winners.
Drilling down into 10-year performance, you can see that in 2020 and 2019, AAL has risen 10.93% and 13.57%, respectively.
The sole loser over this 10-year period was -2.59% in 2014.
United Airlines (NYSE:UAL) also has a compelling pattern around Labor Day. Over the past 10 years, UAL has risen an average 8.98% from 10 trading days before to eight trading days after Labor Day. 90% of the trades were winners.
Last year, UAL rose 13.9% over this period.
Domestic airline
Southwest Airlines (NYSE:LUV) rises an average of 7.26% from the 10 trading days before Labor Day to nine trading days after – with an accuracy of 90%.
Over the past two years, LUV has risen 17.71% and 13.34%.
Here’s Exactly When to Get In and Out of These Airline Stocks
Trading these historic patterns is simple.
Buy the stock the number of trading days before Labor Day shown in the scan results and exit the determined number of trading days after.
Now, if you want to greatly increase your ROI and reduce the cost of entering the trade, use options.
Here are some basic rules of thumb:
- Buy call options.
- Use the first expiration after the trade end date.
- Use an ATM option strike (the strike closest to the stock price).
For example, AAL shows an entry 10 trading days before Labor Day and an exit of seven trading days after.
With Labor Day on September 6, our entry date would be August 23, 2021. Our exit date would be September 15.
On September 6, buy an ATM call with an expiration date of September 17, the first expiration after the end date of September 15.
Sell the call option by market close on September 15.
If you’d like these high-probability trades delivered to you each month, check out my Fast Fortune Club service right here.
Members get access to my Cash Course, which will get you up to speed quickly on how my Money Calendar plays work, as well as a number of other perks like:
- My monthly Money Calendar with up to eight trade ideas…
- Two Money Calendar and Microcurrency Alerts per month…
- Money Hour live sessions every Wednesday…
- My microcurrency training series…
- And more!
Now, let me be clear…
Airlines aren’t the only industry prepared for takeoff.
So you’ll want to be ready when my scanner detects the next opportunity.
Simply click here to find out how you can register.
Talk soon,
Tom Gentile
America’s #1 Pattern Trader, Power Profit Trades
