One sector in particular was heavily shorted on Friday… to the tune of $2,600,000 on only two stocks alone…
One of them could be a fantastic short-biased opportunity today.
I made a nice fast moving trade on it on Friday…
And I’m looking to do the same today!
| Ticker Code | Ticker Name | Ticker Industry | Price Change | Average Volume (50)* |
| TSLA | Tesla Inc | Auto Manufacturers | 7.58% | 13,431,793 |
| GNUS | Genius Brands International Inc | Entertainment | -64.90% | 78,990,430 |
| XSPA | XpresSpa Group Inc | Personal Services | -1.79% | 17,808,523 |
| AAL | American Airlines Group Inc | Airlines | 0.12% | 104,206,518 |
| LK | Luckin Coffee Inc – ADR | Restaurants | -4.11% | 58,555,286 |
| AYTU | Aytu Bioscience Inc | Biotechnology | 0.68% | 10,484,599 |
| BA | Boeing Co | Aerospace & Defense | 2.75% | 44,277,684 |
| MARK | Remark Holdings Inc | Internet Content & Information | -31.00% | 58,725,041 |
| HTZ | Hertz Global Holdings Inc | Rental & Leasing Services | 47.00% | 106,110,766 |
| SHIP | Seanergy Maritime Holdings Corp. | Marine Shipping | 17.65% | 93,870,174 |
| IZEA | IZEA Worldwide Inc | Internet Content & Information | 63.95% | 26,805,303 |
| ZEST | Ecoark Holdings Inc | Plastics products, misc | -1.43% | 904,551 |
| CHK | Chesapeake Energy Corporation | Oil & Gas E&P | 26.94% | 3,444,194 |
| ZM | Zoom Video Communications Inc | Internet Content & Information | 4.18% | 11,852,054 |
| AAPL | Apple Inc. | Consumer Electronics | 4.86% | 34,303,587 |
| WORK | Slack Technologies Inc | Software – Application | -22.94% | 21,382,775 |
| SAVE | Spirit Airlines Incorporated | Airlines | -11.69% | 34,271,717 |
| DGLY | Digital Ally, Inc. | Security & Protection Services | 51.29% | 13,461,437 |
| SRNE | Sorrento Therapeutics Inc | Biotechnology | 16.45% | 52,634,334 |
| INO | Inovio Pharmaceuticals Inc | Biotechnology | 8.76% | 26,331,196 |
By now you may have heard rumors of a possible second wave of COVID-19 cases resulting in businesses closing again, and postponing a possible economic recovery…
While not all sectors and businesses would suffer financially as a result of possible re-closures and postponed economic recovery, airlines indeed would as they will not be able to carry passengers, and therefore could not create new business for their companies.
American Airlines (NYSE: AAL) had traded at a year-to-date high of about $30/share in February, only to plummet as low as $9/share as a result of the Coronavirus pandemic.
Not only is American Airlines being monitored by financial professionals according to TrackStar’s proprietary data, but American Airlines was also one of the top stocks to receive multiple put option sweeps along with other airline stocks that were heavily shorted by the smart money as well.
Bottom line, this tells me that not only are financial professionals analyzing American Airlines – but they may have already started to take short-biased positions in airline stocks as well.
Not only do I agree with the catalyst of being bearish (at least in the short term) on American Airlines, but I can also easily digest the chart and be prepared to trade it.
Given the fact that I’m bearish on American Airlines, should it remain trading below its 100-day simple moving average line which is shown in yellow on the chart above, I’ll take a short-biased position.
While of course I’ll be watching this stock’s price action today, I’ll keep an eye on it throughout the entire week as I do believe airline stocks, including American Airlines, could witness another pullback in their stocks in the days or weeks ahead.
Yours for TrackStar trading,
Davis Martin
America’s #1 Premarket and Day Trader
P.S. You can take a look at 4 other stocks I’m watching into today by accessing this quick video which I posted last night!
Disclaimer: This is not investment advice. This article is for information purposes only and opinion-based on financial advisor data across a selection of websites. Investors should be cautious about any and all investments and are advised to conduct their own due diligence prior to making any investment decisions.