dani face dani quote

No time to travel

Danielle Shay joins CNBC’s Trading Nation to discuss travel stocks. Click the image above to watch the full segment.

The travel industry has been in serious trouble this year. With COVID continuing to be a threat, traveling is the last thing on people’s minds (me included). Because of this, I do not like travel stocks here at all, and I think they will get worse before they get better, despite Americans somewhat getting back to traveling. I’ve heard inklings of people beginning to travel, and it’s possible it may experience a slight bump into the holidays, but at this point, we are two months away from Thanksgiving and the landscape could change substantially by then, so it’s not something I would be on right this moment. Airliners are too weak as are cruiseliners.


When would I buy?
I would consider buying some USO if travel began to pick up, but I still don’t think it’s time. EXPE looks better than the air and cruiseliners but I don’t like to pick stocks based on the “it doesn’t look completely awful” mentality. I like relative strength and consumer trends and neither of those is showing here. The one opportunity I see in travel is an Airbnb IPO. While Airbnb has experienced a loss in revenue as well, Airbnb relatively has held up when compared to traditional hotels, airlines, and cruise companies. There is an argument to be made that perhaps EXPE could benefit from staycations and holiday travel, but I wouldn’t want to put too much capital in it. For traders and investors looking to buy beaten-down stocks, this is really the only opportunity I see – but as I’ve said I just don’t think now is the time. When the time comes, I will stick with EXPE and whichever airliners make it out of this mess, but it is too soon to say which ones those are – but for the long term I’m eyeing LUV and ALK.

Click HERE to watch the full segment.

 

Want more trading education? Follow me here by signing up for my free newsletter, at www.fivestartrader.com, or in my Mastery program which you can find at www.simplertrading.com/profits. You can also follow me on Instagram, Twitter @traderdanielle, or on Facebook.

 

Leave a Comment

Up Next...

Coinbase IPO

Hey Five Star Trader, Today I want to talk to you about Coinbase. As of a few days ago, Coinbase announced it’s going public and it’s been making waves in the market ever since. But what is Coinbase, should you invest in it, and what are the risks involved? What is Coinbase? Coinbase was a … Read more

Read More

Chegg and Earnings…

A Tuesday Trade Edition: One of the most important concepts in trading is to review your work, and learn from the good and the bad. It’s critical to identify what’s working — to do more of it. Each week, you’ll get a trade from my trading journal, in which I explain my whole thought process … Read more

Read More

Google after earnings

Today I want to write to you about my thoughts on Google. Each quarter of the year traders and investors alike wait for the much anticipated FAANG earning reports to come out, and one of those reports comes from Alphabet (GOOGL). Earlier this month, when GOOGL released their reports, the stock promptly experienced a gap … Read more

Read More

Subscribe Today!

Want to walk the path to trading success together? Join Danielle’s “Five Star Trader” E-Letter for market insights, tips, tricks, and special bonuses.

Sign Up Now

Free Downloads

Squeeze Checklist

When you find a squeeze, check these boxes to see if you’re looking at a higher probability bet.

Risk Checklist

Before we can make money we must define the rules that define our risk parameters.

High Probability Plays in a Directional Market

Download Danielle's free eBook

10 Steps to Becoming a Successful Trader

Commit to becoming a successful Trader

Strategy Selection Risk Gauge

Danielle focuses on creating a constant stream of income through the selection of trend-following, directional plays.

Upcoming Appearances

Check Back for Upcoming Dates

all-as-seen-on-logos