06Jan11:01 amEST
My Way of Playing Oil to Stabilize Soon; Chess Moves
I went short AAL, a major airline, in lieu of trying to catch the falling knife that has become crude oil.
On a standalone basis, AAL looks ripe to follow some other major airlines lower today from its extended conditions on virtually all timeframes.
But if crude can at least find a temporary low soon, or stop going down altogether, then airlines should finally come in a bit more out of sympathy.
I went short AAL at $53.59 with a (tight) protective cover stop-loss above $55.
The position is roughly 4% of trading portfolio capital.
Earnings are scheduled for January 27th, and I will be out of the position by then, win or lose.