Ready For Takeoff?
Could today be an important day as the rotation from growth to “value” seems to be getting underway. Is this the hedge of the incessant chatter regarding the barbell approach, with the “low risk” names about to start outperforming? The industrials fell noticeably less than technology Thursday, and this was the third day that technology via the XLK was the worst performing of the 11 major S&P sectors. For me on big down days like this I like to look for names that shrugged off the weakness, as it is often a tell going forward. One name that fits the bill was RYAAY today. Not only did it act well on a soft tape today, but it declined disproportionately against peers. For example it is now 24% off most recent 52 week highs, while domestic players such as DAL UAL and AAL are off off between 58-66% from their yearly peaks. Is it a case of international names doing better because passengers are flying more than their American counterparts, or is there something more to it? Just let PRICE action determine that, and so far RYAAY deserves a long look.