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Q4 Earnings: Forget the Banks, Watch for Delta Air Lines

by | Jan 12, 2022 | Market Outlook

The markets are as choppy as ever, and earnings season is here with a little sneak peak as travel stocks start to report their fourth-quarter (Q4) 2021 numbers!

If you’re looking for evidence of just how volatile this market is, this week has been a great example. 

Rising bond yields saw the tech sell-off story continue Monday morning, only to reverse course midday.

The Nasdaq opened 1.2% lower from Friday’s close, dipping below its 200-day moving average for the first time since mid-April 2020.

The bulls must have had a good lunch because they came in around noon and took control of the market, erasing a nearly 3% loss on the day to finish 6 points in the green.

The drop broke our two-week Wiretap Alerts undefeated streak with Microsoft Corp. (Nasdaq: MSFT) also on this week’s watchlist — falling negative. But in typical Lance fashion, I sold too early…

J-Pow Reassures Markets for a Tuesday Turnaround

Of course, it helped that Federal Reserve Chair Jerome Powell stuck to his guns on rate hikes during Tuesday’s reconfirmation, calming the markets.

In my defense, that was a particularly hard hold with the way tech had been trading, and I decided to stop it out when they were cut in half… 

If I’d stuck to my convictions on the trade and listened to my own advice about giving yourself hard stops like the one I took, we’d be looking at a double by Wednesday.

But we can’t let hindsight take the focus away from our two wins on Bank of America Corp. (NYSE: BAC) and Campbell Soup Co. (NYSE: CPB). The name of the game is to win more than you lose, and we’re crushing things from that respect.

It was a wild way to start the week and we have more catalysts on the horizon as we kick off earnings season!

But don’t get bogged down with the banks. Instead, let’s catch some air with some Q4 2021 travel stock earnings reports…

Q4 2021 Travel Stock Earnings: Keep Your Eyes on Delta

You all know I love earnings season, and for good reason. It’s when the majority of stocks make their biggest moves of the year…

Which is a powerful opportunity us traders can take advantage of to bring home outsized returns on call and put options.

And if you’ve been with the New Money Crew for a quarter or two… then you probably also know my position on bank earnings.

But thankfully, squeezed in the middle of the financial names reporting before Thursday’s open is Delta Air Lines Inc. (NYSE: DAL).

This past month, we covered why December wasn’t time to get back in the travel trade just yet. But if you watched the Jan. 5 WealthPress Live Roundtable, then you know I’m bullish on the sector for 2022.

Delta’s earnings should give traders a good look under the hood for how the industry is handling the omicron outbreaks and inflation pressures… That’s information we can then use to inform possible trades on the rest of the airlines and other travel stocks as they report over the next few weeks.

Take a look at the clip below and let’s talk about travel stocks’ Q4 2021 results as we head into earnings season.

Don’t forget you can follow me @LanceIppolito on Twitter, Instagram and our YouTube channel for more trading insights and tips. And as always, you can find me right here talking stocks and options trading — and printing money — on WealthPress.com

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WRITTEN BY<br>Lance Ippolito

Lance Ippolito

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