photo by Bryan Burke
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As the day began the airline sector took-off. The share prices for most of the airline industry are up greatly. At the time of this post, United Airlines (UAL) is up 22% and continental 17%. What’s the reason for this? OIL. Oil is dropping even more today after the week it had last week. At this moment it’s sitting at $121.60, down $3.13.
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The markets are of course showing some strength, the DOW is up 163 points, NASDAQ up 48 points and the S&P 500 is also up 17 points.
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In the past week that we had, it’s important to watch the different sector and how they relate to each other. With oil slipping the way it has and more to come, we need to watch the companies and the sectors that are affected. I should have seen this coming yesterday when oil fell again and that it would be a good thing for industries like the airlines.
At this level ($121), it’s considered to be a resistant level. The price of $121 is where oil has been sitting at for some time today. It’s next resistance level is $117, but the bulls in the pits expect it to go up from here say that this is a healthy pull-bull. Healthy??? I’m a bull as well but the price of oil should not be above $110. What we need is a stronger dollar. Who knows what the Federal Reserve is doing about that.
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Commodities,
Stock market news
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