AAL: squeeze play
AAL has taken way too much debt and incinerated capital in a buyback scheme that could barely keep the stock in the 30s in the 'repo' rally of 2019 end (remember the 'this is not QE by Powell?).
On the other hand, the hand of shorts (30% of float) shows in the price action, especially from June on: massive squeeze, then progressively sold off.
Very difficult to say how things are going to play from now to election, but news on late Friday that they are receiving 5.5B Treasury loan will provide new ammo to cover and potentially push stock past its levels, especially if the overall market returns to sell Tech in favor of 'anti-Covid plays'.
Look at the levels as support and resistance, and play accordingly. $14 is very stubborn resistance
On the other hand, the hand of shorts (30% of float) shows in the price action, especially from June on: massive squeeze, then progressively sold off.
Very difficult to say how things are going to play from now to election, but news on late Friday that they are receiving 5.5B Treasury loan will provide new ammo to cover and potentially push stock past its levels, especially if the overall market returns to sell Tech in favor of 'anti-Covid plays'.
Look at the levels as support and resistance, and play accordingly. $14 is very stubborn resistance
Penafian
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