Wednesday, January 3, 2007
Energy and the Airlines and Other Musings
Just a brief post as my cold continues to pack a wallop. $56 to $57 remains key support in crude going back a few years. Today's drop made way for a decent rally in the $XAL (Airlines Index). As crude slumped XLE and OIH also went in for a classic drubbing, with the XLE finally breaking its 50 dma. The slide in energy was enough to push the Dow Transports back above the 200 dma. Incidentally, VIX moved back above 12... it is time to look at some bullish plays in that realm.