Whats going on with Southwest (LUV)?

C

chsbla

They are up 4% when airlines are down, esp leading up to the fed meeting tmw which should raise the price of oil hurting Southwest. i know they do hedging but there is no way they can stay that far ahead of $85 oil.
whats up with this?
 
Quote from nazzdack:

It's a lot of pairs-related trading where everybody is "long" LUV and short the other major carriers.
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So basically once everyone sees the cut tmw and oil close above 80 there should be some dumping of LUV since the whole airline industry will get clobbered from the cut? I think they are trying to prop this up because its the jewel of airlines, so when this takes a dive they can just knock down the whole sector even more

edit Oil was just at 80.51...hrmmm
 
Maybe......as a one-day thing. LUV tends to trend higher towards the end of the year because of holiday-related travel. People will fly regardless of energy prices. Don't be too bearish now nor TOMORROW.
 
Quote from Dustin:

Dunno but I shorted 7k at .95 and liking it.
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How did you get in at .95?
I got faked out at around .85, wish i would of waited a little longer to go short. Nice call
 
I am actually going to start covering my airline shorts. I have been short for quite some time and have made roughly 50% all told. Full disclosure: short AMR, UAUA, LCC, NWA, DAL, and JBLU
 
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