Originally Posted by
hdale
Can someone answer this question? On a day when oil prices have reached another record high of over $135, why are most airline stocks up? I dont get this!
A dead cat bounce... the price isn't going up because of investors who think the price will go up. Many pro investors and hedge fund managers have long ago sold most airlines short. After the recent spiral down and yesterdays drop, this seems like as good of a place as any to exit those positions.
If they sold AMR short in December at $20 and closed their position today at $6.50, that is a 300% profit in six months. Not too shabby.