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Is This The Best Way To Play The Plunge In Oil Prices?

Is This The Best Way To Play The Plunge In Oil Prices?

One of the things on which I pride myself when writing here, or elsewhere for that matter, is that I don’t run away and hide should I make a bad call. Dealing room life taught me to own my mistakes, an essential thing to do if you are going to cut, take a small loss and move on to the next opportunity. So, I will freely admit that I have got crude wrong in my last couple of calls. I was bearish on the run up to $95 and bullish, looking for a bottom, on the way down. That, though, is behind me. I have taken a couple of small losses, and with crude at around $75, somewhere close to its average price for the year, I’m now looking forward and considering how I can trade that.

My misreads over the last few weeks make me a bit reluctant to take a view on crude at these levels. I have been prioritizing demand when the market has been focused on supply and vice versa, leaving me a bit confused and needing to reevaluate things. So, I have been thinking about who, with the holiday season approaching, can benefit from the reversion to the mean in oil, and have arrived at a conclusion that doesn’t give me any pleasure…airline stocks.

For background, like any rational person who has traveled by air in the last year or so, I hate airlines with an almost embarrassing passion. That is not just because they have made flying in economy such an unpleasant experience by nickel and diming customers to death, nor that their “flex pricing” seems to mean just ever more expensive tickets,…





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EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
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