A Quick Southwest Flight Heading South; Chess Moves
I just went short LUV, Southwest Airlines, at $43.44 with a protective cover-stop above $45 on a closing basis.
LUV has enjoyed a magnificent multi-year uptrend, unaffected by its steepness.
But as the daily chart, below, indicates, the stock has gone sideways since late-January. Ultimately, for my short to work the stock likely needs to lose $42, below.
Either way, the stock is losing its 50-day moving average today and is not yet oversold, giving me enough evidence to take a stab at a short in a sloppy overall market.