They are up 4% when airlines are down, esp leading up to the fed meeting tmw which should raise the price of oil hurting Southwest. i know they do hedging but there is no way they can stay that far ahead of $85 oil. whats up with this?
It's a lot of pairs-related trading where everybody is "long" LUV and short the other major carriers.
So basically once everyone sees the cut tmw and oil close above 80 there should be some dumping of LUV since the whole airline industry will get clobbered from the cut? I think they are trying to prop this up because its the jewel of airlines, so when this takes a dive they can just knock down the whole sector even more edit Oil was just at 80.51...hrmmm
Maybe......as a one-day thing. LUV tends to trend higher towards the end of the year because of holiday-related travel. People will fly regardless of energy prices. Don't be too bearish now nor TOMORROW.
How did you get in at .95? I got faked out at around .85, wish i would of waited a little longer to go short. Nice call
I am actually going to start covering my airline shorts. I have been short for quite some time and have made roughly 50% all told. Full disclosure: short AMR, UAUA, LCC, NWA, DAL, and JBLU