More Posts and Oil/Airline Trade

By: ispeculatornew
Date posted: 08.18.2008 (7:58 pm) | Write a Comment  (2 Comments)

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For those of you who have been following my website/blog for a while I just want to comment on my lack of posting for the last couple of months. I have been very busy for the last couple of months but I now plan to post at least every other day (maybe more) for the foreseeable future. Therefore, I would recommend that you check in more often if you want to keep up to date on my stock ideas and commentary.

On another note I want to comment on the oil/airline trade that I have mentioned a few times (most recently in my post on my oil calls). I still think oil is due to decline but I think the easy money in airlines has been made. I actually think the huge spike in airline stocks has been overdone, especially considering that oil is still trading at $112 a barrel. I would be cautious taking a new long position in an airline stock. If you do own an airline stock and you are sitting on a decent profit I would recommend at the very least that you take some gains.

Disclaimer: I have no position in oil futures or airline stocks.

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2 Comments

  1. Comment by Amit — August 19, 2008 @ 3:27 am

    Hey Phil,
    What is the deal with Fannie, Freddie? Yesterday, they had a fall. What I dont understand is that how investors would be at loss if the Fed intervenes or takes over the banks?

    Best
    Amit

  2. Comment by admin — August 19, 2008 @ 6:50 pm

    I haven’t been keeping track of financials as closely as I was but I know there is a general fear that some banks are going to start to go under. This is causing nervous investors to sell off most financials (I don’t know if there was any particular news for Fannie or Freddie).

    I am not sure how it would work out if the Fed takes over Fannie or Freddie. I would assume that it would be like a bankruptcy and the stock would become worthless. At any rate I would be very careful taking a long position in financials.

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