Closing out $SAVE position

Christmas came early!🎅🏻🎁🎄

Merry Christmas to all! Santa isn’t the only one soaring high right now, $SAVE is up 80% since starting the position and though I took some profits along the way, today it was time to finally close out the position. And yes there may be more upside to be had but one of my main rules of trading is to not be afraid to leave money on the table. I’ll explain why I’m closing in a second, but first let’s admire those beautiful gains…

The Christmas SPIRIT is upon us!

RECENT NEWS

Spirit Airlines Inc. stock outperforms market on strong trading day

Thought Process On Closing Out The Position

Looking at the chart below I can see that it very well may continue its upward trend, I closed out the position for three main reasons…

REASON 1

We’re nearing 70 RSI - Back in Early December I took some profits as it neared 70 RSI territory — it never crossed but did in fact drop drastically. This was based on rumors that the DOJ case against the JetBlu ($JBLU) merger was not headed in a favorable direction.

Spirit Airlines stock is falling as JetBlue merger decision nears; here's what you need to know

This massive dip would have been a great time to scoop up more shares. Sadly I did not as I wasn’t sure if the decision on the DOJ case was near. It would’ve been a very profitable move though as it’s since shot right back up very quickly.

Now that it’s nearing 70 RSI again, it’s one of the reasons I decided to close out the remaining shares.

REASON 2

As I mentioned, there is still the impending DOJ case trying to block the JetBlu merger. This ruling could obviously go either way. If the merger goes through I’d expect the stock to shoot up to even higher heights. But if it’s blocked it will cause another drop in price.

It’s important to remember that regardless Spirit is still one of the biggest buget airlines and as the inevitable Recession nears, people will be looking to save money more and more, pushing them towards Spirit for their travel. So if the price falls after the merger is blocked it’s a potential opportunity to get shares at a discount yet again.

REASON 3

The holiday. Monday is Christmas day and the Market is closed. For some reason I feel like there’ always a drop after holiday closures. And being the end of the year it seems as though traders may start harvesting some losses for tax purposes, so my gut tells me that we may see a drop after the long weekend. But there is always a chance people spend their Christmas money on stocks and we see a post holiday “Santa Rally” as is typical, but nothing these days seems to be acting normal. Here are a few articles worth checking out:

Wall Street tumbles to sharply lower close as abrupt sell-off snaps rally

Wall St Week Ahead Wall Street awaits 'Santa Rally' with US stocks near records

Santa Claus doesn't arrive on Wall Street until after Christmas

Perhaps I should’ve held out a few days longer, but seeing that I’m already up to 80% gains, the RSI is basically at 70, and the DOJ case is still ongoing, I felt comfortable closing out my position in $SAVE and putting those funds into a fresh setup in the New Year.

Have a great holiday weekend everyone :)

Trade long and prosper!

🖖

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** This is my personal opinion and not investment advice. I am not a Certified Financial Advisor. **