Whats the best airline to short? is there an ETF?
If there isn't an ETF, is there an optionable index?
Additional Information:
I'm not considering shorting them right now, but i see oil continuing up to at least 200, so i believe airlines will do badly in the future. I'm just making sure that, come a rally to resistance, i know where exactly to short
Answers
4085 points
EthanR answered one year ago …
Chaos, I'm not sure I would short the airlines right now. To me it looks like the gasoline prices could fall a bit this week. That would give a boost to the airlines.
Looking at the chart of DAL, the RSI, Stochastics, and MACD all look like they are turning positive. The stock has fallen from $18 to $6. What is it that you are seeing that makes you want to short the airlines right now?
3963 points
MNSL answered one year ago …
I think some European and American Airlines will affect badly if oil prices go up to $150/barell.
If we can see strong correction in oil then it is better to invest in airlines than shorting it.
Finally I think month of July will be cruisal for commodity market and we will be able to see clear direction.
104 points
maharoger answered one year ago …
I have shorted Continental Airlines (CAL) several times lately and have made money every time. When I asked myself which was best to short, I looked at all 13 stocks in the Airline Index (XAL) and chose Continental because it hasn't gone down as much as most and yet it is not the strongest airline, like Southwest (LUV). The symbols in the XAL index are ALK AMR CAL DAL JBLU LCC LUV MESA NWA PNCL RJET SKYW UAUA XJT and the index is $XAL in my quote page. Also, I studied the typical intra-day action in CAL to determine the best time of day to short it. Some days when oil is higher, the stock would trade higher in the opening period before heading lower, so I would put in a sell short order at a limit price above the market. However, watch for sudden rallies as some people buy airlines as a surrogate for shorting crude oil. These rallies present a shorting opportunity if one has the courage, but be sure oil is up that day before you short.
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