Airline stocks : Benefiting from lower oil prices (Duh)

1055.hk - China Southern airline and a few other airline stocks appeared in today's HK scan. Plotted the 2 chart of airline stocks.

Of course, our very own SIA has been doing fantastic as well..fast approaching its 12 dollar ,its 3 year high resistance level. Not forgetting tiger, which showed signs of bottoming as well..

A huge chunk of airline operational costs come from oil and its expenses. If you alr have stocks like Kcorp, SembCorp Marine and ezion etc, instead of continuing to buy on dip on these oil dependent stocks like keppel, semb marine etc, why not take on the different approach and look into airline stocks - natural hedge at current conditions of the oil.

In short, technicals of airline stocks does exhibit some forms of bullishness in this sector contrary to the oil rigs/explorations stocks. 

IMHO, if the ME/Saudis want to recapture market share from the US shale companies, it will surely be a long dragging battle before they eventually got shake out and shut down. And during this painful process, we might see some of these companies defaulting on their junk bond. If that does happen, more problem will then surface, especially on the US economy. With a pending rate increment from, the government will be especially careful to the sector which added a considerably amount of jobs to its boom. Maybe till things get really serious, we can consider betting a rebound on oil.