Thursday, March 03, 2005


A few moments ago, the Standard and Poors Energy SPYDR (XLE)was up .89%. Not nearly as much as the price of crude; London trading closed up 2.6%. Crude is making a run toward all time record prices.

Guess which has gone up a bigger percentage the past two years, $XAL or $WTIC? The airline index or the West Texas Crude Index? Guess which is up the most today?

I know, it is a trick question. Two years ago, the airlines were in a deep hole. I would bet that few folks-amateur or professional-know that oil and air trade together more likely than not. The strength in the price of oil is actually a positive indicator for the airline business. A couple of traders said today, the sentiment is so negative that it is time for a bounce. The fact is that load factors and revenues are increasing. Losses may not be as great this quarter as projected.

My response to the high oil price today was to buy more air. If you have read my previous post, you know that I have bought "the big four", CAL, DAL,NWAC, and AMR;. Yes it takes a lot of Moxie to buy these. Yes a fire cracker popping in an airport anywhere might be enough to send all of these tumbling. One should only invest with money one is prepared to lose.

As an non-paid amateur investor, I make no recommendations. I spend a lot of time writing in the hope that I will help someone. I hope someone will make money without paying high commissions and fees.

I hope you think it fair for me to ask you to send my info to a friend. I believe my life has been spent learning about the markets in order for me to share with others; I know other bloggers will read my blogs and not refer me to others how ever, if you are not a financial blogger, please do not return to my site unless you are willing to occasionally "pass it on".