Oil plays

[Goods]

For those learning...

When there's a big drop in oil, the best plays imo are the airlines. UAUA, JBLU, LCC, NWA, etc. They use a huge amount of oil and benefit directly from any drop. Check out any of those charts from yesterday after the oil numbers came out.

Also, delivery services like FDX, UPS get momentum. Transports/shipping work well too but are more directly affected by a bad economy. There's less stuff to ship when no one's buying it.

[TN TITAN Fan In STL]

Originally Posted by Goods

For those learning...

When there's a big drop in oil, the best plays imo are the airlines. UAUA, JBLU, LCC, NWA, etc. They use a huge amount of oil and benefit directly from any drop. Check out any of those charts from yesterday after the oil numbers came out.

Also, delivery services like FDX, UPS get momentum. Transports/shipping work well too but are more directly affected by a bad economy. There's less stuff to ship when no one's buying it.

well said check out YRCW its been trading low for awhile and they have the new velocity service that just started and is suppose to cut into the fed ex ups conway piece of the market.

[sachsich]

how about when oil spikes due to hurricanes, violence etc.? are the plays then the oil companies and what else? maybe shorting airlines and delivery services. with the fed coming out today and probably not changing the rates and oil down, should be a good day?