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Bought the LUV dip.

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Thread replies: 8
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So /biz/, I bought the bottom of the recent dip with Southwest Airlines a few days ago at $37.50/share. Yesterday it recovered 2.4% only to lose it all gain today. It's not quite a dead cat bounce because the loss was due to J.P. Morgan downgrading expectations on LUV to $34.

What do you think biz? cut my losses now (mostly time, I'm breaking even) or will the stock recover at least 6% in the near future? Even if it does reach $34, it doesn't mean it will get there in a steady downward slope...

I'm about $2k in and I'm considering all options.
>>
Hold for long time until they break into international flights or sell now and never get into airline stocks ever again.
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>>1407552
Honestly I was only planning on holding it for 10 days or so until the emotional part of the selloff was recovered an share prices reached a more stable point. I don't invest long.

Given this I suppose you think I should cut & run...
>>
>>1407544
Did you checked macd, atx and tri indicator, and news, quarter results and ratings? Or did you just bought because of muh dip?
>>
>>1407576
dude, I follow all those indicators and I know they missed the mark on their earnings. I'm not saying it will recover the full loss, just a part of it which is why I bought in at the bottom of the dip. Plust the three year low is $35 which could create a resistance level. Basically if the price reaced JP's new expectation would place it where it was mid 2014, so it's somewhat of an extreme adjustment. Not to mention how favorable Southwest has been by analysts; overall but especially among airlines... I think it's high's have been overvalued, but $34 is like the absolute bottom
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>>1407594
Alright, if you are sure than leave it for 2-3 years, a turn around share needs time to come back.
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File: image.png (160KB, 446x398px) Image search: [Google]
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>>1407558
It should go back up next month, but nothing drastic. Southwest is running very last in the top four airlines this month on a lot of their metrics.

t. Looking at arrival and departure metrics right now through my airline
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>>1407612
That's really not necessarily true, especially after over reactive dips. Of course, the key here is that it has to be over reactive, buy many are. in the last month I made 10% off Humana, 7% of Caterpillar, and 8% off Priceline because I bought in the dips. Ironically, one of the best indicator of short term gains is stock value loss haha
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