(click chart to enlarge)
Doesn’t look good for the airline stocks(red trace, duh that would be the GREEN trace, corrected 5/18/08). As the price of oil goes, the airlines do the inverse. As Jeff Macke say on CNBC’s Fast Money, if the market’s open it’s a good day to sell airline stocks.
USO is the oil ETF, here’s the description from Yahoo…
The investment seeks to reflect the performance, less expenses, of the spot price of West Texas Intermediate (WTI) light, sweet crude oil. The fund will invest in futures contracts for WTI light, sweet crude oil, other types of crude oil, heating oil, gasoline, natural gas and other petroleum based-fuels that are traded on exchanges. It may also invest in other oil interests such as cash-settled options on oil futures contracts, forward contracts for oil, and OTC transactions that are based on the price of oil. The fund is nondiversified.
Chart from TC2000.
