OPEC to Cut Crude Oil Output. Good News if Your Short in The Airline Sector – $RJET
Oct 24, 2008 Small Cap Stock Picks, Technical Analysis
I’ve been watching in bewilderment at how much airline stocks such as UAUA, AMR, DAL, LCC, and RJET have have rallied without any real profit taking to set in yet and have shorted RJET a few times mostly for profits as i’m looking to catch this on the down side once people start taking there profits. And its not a matter of if this will happen, its when. With every huge sector rally theres always a point when it peaks and retraces a significant amount before it continues going up, levels, or continues to fall.
OPEC scheculed an emergency meeting for friday the 24th and is expected to cut crude oil output by an unknown amount. Demand for oil has been on the decline which has lead to oil dropping around 55% from its peak near 150. Falling oil prices has ment increased profits for airlines which is why the airline sector has been skyrocketing. Yet with rumors of the OPEC cut, hugely overbought conditions, and airline stocks losing momentum this seems like it could be the beginning of a good time to catch Airline stocks on a downside move at least in the short term.
I’ve been trying to go short in several of them yet shares have been hard to borrow. I managed to borrow some shares of RJET at 12.43 on Wednesday and alerted Black Service Members to go short. UAUA was also another very appealing airline stock and fell as far as 20% thurday during the session yet i wasn’t able to get any shares to short.
RJET Technical Analysis:
