As more and more people return to their normal routines and footfall in airports rise the prospect of airlines returning to post-pandemic numbers grows every day. However, one of the key risks ahead is whether the Fed will be hawkish or bearish tomorrow. If the Fed are bearish tomorrow and show a cautious approach to tapering then that should be supportive for stocks in the near term.

Over the last 10 years, Southwest Airlines has risen 10 times between Oct 01 and Dec 07. The average rise has been15.47% and the largest gain was in 2014 with a 29.43% rise. The largest fall was in 2018 with a large -16.51% loss.

Major Trade Risks: If the Fed are dovish next week, but then there is a very strong Oct 08 NFP print that could potentially invalidate this outlook.