No Luv For Southwest Airlines As it Extends Losing Streak to Fourth Day

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Southwest Airlines LUV shares are trading sharply lower by $0.75 at $41.50 in Monday's session. With no specific news out on the issue, it just may be the sharp rally in Crude Oil that is spooking investing in the airlines sector. After shedding nearly $1.00 on Wednesday ($44.30 to $43.45) and another $0.59 on Thursday ($43.45 to $42,86), the issue was off by $1.23 at its low ($41.02) in today's session. Since making the low it is attempting to clear the $41.50 level. The sharp decline in the entire sector may be attributed to a Deutsche Bank downgrade of Delta Airlines DAL on April 1. The firm downgraded the issue from Buy to Hold and and lowered its price target from $60 to $50. Since the downgrade Delta has fallen from its March 31 close ($44.96) to $41.45. Southwest Airleines has now relinquished nearly all of its hard fought gains that saw the issue climb from its November low ($40.23) to it all time high in January at $51.06. Unfortunately, for shareholders of the issue, most of the decline has taken place since March 20, when it ended the session at $47.42. It should be noted the declines from the last two trading sessions was much higher than its 20 day average of 6.3M as 19.3M and 15.6M changed hands in the two previous sessions. It is on track for another above average volume day as it has already traded 10.3 shares with three hours to go in the trading day.