Stock Online TraderBulls & Bears Make Money, Pigs Get Slaughtered…Let Us Not Be That Pig…

United States Oil Fund, LP (USO) is a commodity pool that issues limited partnership interests or units that may be purchased and sold on the American Stock Exchange (the AMEX). The Company invests in futures contracts for light, sweet crude oil and other types of crude oil, heating oil, gasoline, natural gas and other petroleum-based fuels that are traded on the New York Mercantile Exchange (NYMEX), International Currency Exchange (ICE) Futures or other United States and foreign exchanges (collectively, Oil Futures Contracts).

Oil is trading around 109$/bbl and recently breached its 200 day moving average on the downside. Oil has corrected multiple times on its way up but has never dropped below the magically 200 dma. Does this mean end of rally for oil ?? It will be an interesting few days to watch the movement. Lower oil means green days for the market.

Lower oil means happy days for airline stocks…..

Additionally oil refiners love to see lower oil prices.

Lower oil price means depressing profits for oil exploration companies…..

Similarly solar stocks becomes less valuable as an alternative source of energy when oil becomes cheaper…

JetBlue Airways Corporation (JBLU) is a passenger airline that provides customer service at low fares primarily on point-to-point routes. As of December 31, 2007, the Company served 53 destinations in 21 states, Puerto Rico, Mexico and the Caribbean. Most of its flights have, as an origin or destination, one of its focus cities: Boston, Fort Lauderdale, Long Beach, New York, or Washington, D.C. During the year ended December 31, 2007, JetBlue operated over 550 daily flights with a fleet of 104 Airbus A320 aircraft and 30 EMBRAER 190 aircraft. JetBlue maintains a fleet of two types of aircraft, the Airbus A320 and the EMBRAER 190. During 2007, its operations primarily consisted of transporting passengers on its aircraft, with domestic United States operations, including Puerto Rico, accounting for 95.2% of its capacity.

JBLU is looking strong to keep its uptrend. It however needs support from falling oil prices. Waiting for reversal to short into.

US Airways Group, Inc. (LCC) is a holding company whose primary business activity is the operation of a major network air carrier through its wholly owned subsidiaries, US Airways, Inc. (US Airways), Piedmont Airlines, Inc. (Piedmont), PSA Airlines, Inc. (PSA), Material Services Company, Inc. (MSC) and Airways Assurance Limited, LLC (AAL). As of December 31, 2007, US Airways Group offered scheduled passenger service on approximately 3,800 flights daily to 230 communities in the continental United States, Hawaii, Alaska, Canada, the Caribbean, Latin America and Europe.

LCC couldnt break out of 200 DMA strongly. It fizzed out after starting strong on 2nd Sept. Waiting for 10$ level to short into. It forms double top.

Northwest Airlines Corporation (NWA) is the direct parent company of Northwest Airlines, Inc. Northwest is engaged in the business of transporting passengers and cargo. Northwest’s business focuses on the operation of a global airline network through its assets that include domestic hubs at Detroit, Minneapolis/St. Paul and Memphis; a Pacific route system with a hub in Tokyo; a transatlantic joint venture with KLM Royal Dutch Airlines (KLM); a domestic and international alliance with Continental Airlines, Inc. (Continental) and Delta Air Lines, Inc. (Delta); membership in SkyTeam, a global airline alliance with KLM, Continental, Delta, Air France, Aeroflot, Aeromexico, Alitalia, China Southern, CSA Czech Airlines and Korean Air; agreements with three domestic regional carriers, including Pinnacle Airlines, Inc., Mesaba Aviation, Inc. and Compass Airlines, Inc., and a cargo business that operates a freighter fleet of aircraft through hubs in Anchorage and Tokyo.

Can NWA break the 200 DMA ?? Waiting for higher RSI to start shorting.

Few other airline stocks…..

Can Weak Dollar Make Money
Yes it can. Deutsche Bank and PowerShares announced the listing of PowerShare DB U.S. Dollar Bullish UUP and the PowerShare U.S. Dollar Bearish UDN exchange traded funds (ETFs) on the American Stock Exchange. These ETFs offer investors access to the performance of the United States Dollar against global currencies.

This is simply wow. Investors can make money not only in the strong dollar, but also in the weak one. However investing in foreign exchange related product is not for everyone. One needs to understand and monitor the national debt levels, trade deficits, changes in domestic and foreign interest rates, regional and foreign politics, economics and financial events.

Wal-Mart soon to enter India
A potential joint-venture between Wal-Mart WMT and India’s Bharti Retail is likely on the way. Multi-brand foreign retailers are only allowed to operate in India with a local joint-venture partner. Bharti plans to invest $2 to $2.5 billion by 2015 across 30 Indian cities each with a population greater than 1 million. Wal-Mart has not said how much it plans to invest. At this stage Wal-Mart’s role seems focused on providing supply-chain and technology management to the venture.

Once Wal-Mart breaks into the Indian market, they have the capability to capture a huge market. However it would be a big mistake from their part if they step into the market without thoroughly understanding the mind-set of Indian consumers.

Sirius and XM Satellite to Merge
Satellite radio companies Sirius SIRI and XM XMSR have signed a merger agreement. The tax-free, all-stock deal values the combined company at $13 billion, including $1.6 billion in debt. The companies have lost $7 billion over the past eight years as they have battled for subscribers and high-profile talent, and their share prices have fallen 47% over the past year. Together, they can offer subscribers greater variety, including sports, news, and celebrity hosts. Sirius and XM claim their marriage would not create a monopoly, since they compete with media offerings like iPods, cellphones, and HD Radio.

The Department of Justice will need to decide whether the combination would violate antitrust regulations. This is going to be an really interesting merger. What you and me as an investor needs to find out is will a combined company be better equipped to stem the slowdown in satellite subscriber growth ?

JetBlue CEO Promises Big Changes
Recently a breakdown in communications at JetBlue JBLU led to passengers stranded for almost a week. JetBlue assumed that the ice storm would pass quickly and refrained from cancelling flights right away, as other airlines did. The storm intensified, and JetBlue ended up cancelling 1,000 flights within five days and shutting down service in 11 cities. At one point, nine full JetBlue planes sat on the runway at JFK for up to 10 hours. The company’s communication system failed to cope, pilots and flight attendants were not where they were needed, and there was no method in place to contact them. JetBlue said they will enact a customer bill of rights that will pay stranded passengers and vowed to make changes.

Consumer confidence will be low after this mishap which would possibily affect their quarterly earnings. The stock is already seeing negative numbers.

(Source: SeekingAlpha)