This Airline ETF is Surging: A Guide to Trading It with Charts
Current Performance of the Airline Sector: The US Global Jets ETF (JETS) is gaining attention as the airline sector shows strong performance, with major airlines like Southwest, Delta, and United reaching new highs, indicating a potential turnaround for investors.
Investment Strategy: The JETS ETF offers a way to invest in the airline sector without the risks associated with individual stocks, making it an attractive option for those looking to diversify their portfolios.
Market Analysis and Projections: A breakout above the $27 resistance level is seen as critical, with potential upside targets of $33 and possibly low $40s in the long term, supported by a favorable long-term chart setup.
Risk Management: Investors are advised to set stop-loss orders near the rising 50-day moving average to manage downside risk, as this level has historically provided support during upward trends.
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- Market Performance: On Wednesday, the S&P 500 Index rose by 0.02%, the Dow Jones Industrial Average increased by 0.36% to a new record high, while the Nasdaq 100 fell by 0.09%, indicating a divergence in market sentiment amid enthusiasm for artificial intelligence and declining oil prices.
- Oil Price Fluctuations: Crude oil prices plummeted over 5% to a five-week low due to optimism surrounding a US-Iran peace deal, which eased inflation expectations and pushed the 10-year Treasury yield down to a 1.5-week low of 4.45%, providing support for the bond market.
- Mortgage Application Decline: US MBA mortgage applications fell by 8.5% for the week ending May 22, with the purchase mortgage sub-index down 0.4% and the refinancing sub-index down 18.1%, reflecting the dampening effect of high interest rates on housing demand, as the average 30-year fixed mortgage rate rose to 6.65%.
- Corporate Earnings Outlook: As of Wednesday, 83% of the 475 S&P 500 companies that reported Q1 earnings exceeded expectations, with projected earnings growth of 12% year-over-year, but excluding the technology sector, the growth is only 3%, indicating signs of overall earnings weakness.
- Divergent Market Performance: The S&P 500 index fell by 0.07% while the Dow Jones Industrial Average rose by 0.54%, indicating a divergence in market trends, particularly with the Dow reaching a new high, reflecting increased investor confidence in certain sectors.
- Impact of Falling Oil Prices: Crude oil prices dropped over 3% amid optimism for a normalization of oil flows from the Middle East, which not only eased inflation expectations but also pushed the 10-year Treasury yield down to a 1.5-week low of 4.45%, positively affecting the bond market.
- Decline in Mortgage Applications: US MBA mortgage applications fell by 8.5% for the week ending May 22, with the purchase mortgage sub-index down 0.4% and the refinancing sub-index plunging 18.1%, indicating the suppressive effect of high interest rates on the housing market.
- Corporate Earnings Overview: As of now, 83% of the 475 S&P 500 companies that reported Q1 earnings have exceeded expectations, with overall earnings projected to rise by 12% year-on-year, but excluding the tech sector, the growth is only 3%, highlighting disparities across industries.
- Market Divergence: The S&P 500 index fell by 0.05%, while the Dow Jones Industrial Average rose by 0.23%, and the Nasdaq 100 index decreased by 0.15%, indicating a divergence in market performance, particularly under the pressure of weak energy and cybersecurity stocks.
- Crude Oil Price Decline: Crude oil prices dropped over 4% to a five-week low amid optimism surrounding a US-Iran peace deal, which has lowered inflation expectations and pushed bond yields lower, with the 10-year T-note yield falling to a 1.5-week low of 4.45%.
- Mortgage Application Decrease: For the week ending May 22, US MBA mortgage applications fell by 8.5%, with the purchase mortgage sub-index down 0.4% and the refinancing mortgage sub-index down 18.1%, indicating the suppressive effect of high rates on the housing market.
- Earnings Performance: As of now, 83% of the 475 S&P 500 companies that reported Q1 earnings have exceeded expectations, with Q1 earnings projected to rise by 12% year-over-year, but excluding the technology sector, earnings growth is only about 3%, marking the lowest in two years, reflecting disparities across industries.
- Micron Milestone: Micron Technology's stock surged over 19% on Tuesday, pushing its market capitalization past $1 trillion for the first time, which has drawn significant investor attention and catalyzed a broader rally in technology stocks, indicating strong confidence in the semiconductor sector.
- Tech Indices Surge: The S&P 500 and Nasdaq Composite both reached new highs, marking their longest winning streak in over a month, reflecting optimistic market sentiment and heightened investment enthusiasm in technology stocks driven by Micron's performance.
- SK Hynix Joins Ranks: South Korean chipmaker SK Hynix also entered the $1 trillion market cap club on the same day, highlighting the influx of investment into AI-linked semiconductor companies and further enhancing the growth potential of the global semiconductor market.
- Auto Sector Volatility: Despite AutoZone reporting better-than-expected earnings, its stock experienced its worst day since 2022, illustrating market concerns regarding the automotive sector amid rising inflation and energy prices, which could impact consumer spending and overall economic stability.
- Tech Stock Surge: Micron's stock soared over 19%, pushing its market cap above $1 trillion for the first time and helping the S&P 500 and Nasdaq Composite reach new highs, indicating a robust recovery in tech stocks and renewed market confidence.
- Election Season Dynamics: Texas Attorney General Ken Paxton defeated incumbent Senator John Cornyn in the Republican primary, becoming the nominee for the 2026 midterm elections, which is expected to be one of the most expensive races, reflecting pressures on Republicans from rising inflation and energy costs.
- Trump's Cabinet Meeting: President Trump will hold a Cabinet meeting at the White House, originally set for Camp David but moved due to bad weather, against the backdrop of U.S. self-defense strikes on Iran, which may impact prospects for a peace deal between the two nations.
- Dick's Sporting Goods Earnings Miss: Dick's reported a first-quarter earnings miss despite beating revenue expectations, as acquisition-related expenses from Foot Locker weighed on profits, highlighting challenges and integration costs faced by the retail sector.
- Tech Stock Performance: The S&P 500 reached new highs due to a tech rally, although Snowflake and Salesforce underperformed investor expectations, with gains of 2.6% and losses of 10% over the past three months, indicating a divergence in market sentiment towards tech stocks.
- Analyst Expectations: The majority of the 46 analysts covering Snowflake maintain buy or overweight ratings with a target price of $231.38, while 40 analysts for Salesforce share a similar outlook with a target of $254.43, suggesting ongoing confidence in both companies' future performance.
- Airline Stock Recovery: Airline stocks have performed well over the past month, with Delta Air Lines up about 16% and American Airlines up 22%, reflecting optimistic market sentiment ahead of the summer travel season, despite overall stock prices remaining below January highs.
- Impact of FedEx Spin-off: The upcoming listing of FedEx Freight marks increased Wall Street interest in less-than-truckload companies, with FedEx shares surging 45% over the past six months, indicating market recognition of its growth potential.











