Today we are going to look at Alaska Air Group (ALK) to see if it is ready to take off or if the stock is in a holding pattern. The stock has been grinding down since 2017 so we’ll look to see what my technical analysis says. We will look at the 7 fundamental parameters I look to see if a stock can be considered a growth stock. Then we will take a look at the technical analysis side using the setups I have created and use for my trades. I have no plans to own Alaska Air Group in the next 72 hours and do not hold any positions in ALK.
There are 7 fundamental markers I look for in a stock. I try to only purchase growth stocks so these are the parameters I look for to see if a stock meets the majority of the markers. I prefer to have all seven fulfilled. You can it more in depth here: https://evancarthey.com/how-to-scan-for-winning-stocks-an-insiders-view-to-my-process/
- Market Cap: > $300 million
- EPS growth past 5 years: >0%
- P/E: Over 10
- EPS growth next 5 years: >0%
- Sales growth past 5 years: Over 20%
- Debt/Equity: <0.1
- Sales growth qtr over qtr: Over 5%
Does the stock meet these 7 markers?
- Market Cap: 7.65B (YES)
- EPS growth past 5 years: -0.30% (NO)
- P/E: 17.61 YES
- EPS growth next 5 years: 14.59% (YES)
- Sales growth past 5 years: 9.90% (NO)
- Debt/Equity: 0.56 (NO)
- Sales growth qtr over qtr: 6.30% (YES)
I used Finviz.com for the fundamental analysis screener. With Alaska Air Group hitting only 4 of the 7 markers it is not a growth stock in my eyes and not one I would be interested in.
Technical Analysis for Alaska Air Group
The first setup is the 61B Trade long. Price has hit the 61.8% Fibonacci retracement line so the current exit is the pink line. If the price goes down and hits the blue line first before hitting the pink line then all exits move to the purple line. After that even if the stock continues to go down the exit won’t again. That is the final move. You can, of course, get out anytime but that is how I trade this setup with those entries.
This next setup is using the monthly time frame. The exit is the pink line so it doesn’t have much more to run up to hit it. But Alaska Air Group is still in two long setups at the moment so it looks like there is some short term movement to the upside. I don’t have a name for this setup yet. The entries are the same as the Lightning Trade Setup that I used to use pretty much exclusively. The only difference is how you get into this setup. What you look for are two consecutive pivots and then when the price comes back and hits it then that is your signal to get in.
Popular Links
Here are a couple of links if you are looking at how I view the market and some trade setups. You can create your own trading style and setups. Quit paying losing traders to teach you. The only thing they teach is how to lose money.
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