It's always amazing to see the companies that benefit the most from lower oil go down as much as those that get hurt by it. I find it reassuring because the best opportunities come from this market's innate stupidity.
The big risks to the airline and retail numbers come from gasoline going back to $3. If you have the Saudis continuing to pump like mad and the Canadians and Mexicans continuing to send oil to us and our refineries operating 24/7 while we can't export, then the possibility of gasoline going back to $3 is fairly minimal.
That means the retailers will keep making their numbers and the domestic airlines, the ones least levered to the strong dollar's tourism issues, will do better. It means the restaurants are able to keep working.
That's exactly what a bull would be looking for.
So keep watching. Those stocks can reignite: I am thinking Southwest Airlines (LUV), Jack-In-The-Box (JACK), Target (TGT) and Lowe's (LOW), the last two being ActionAlertsplus.com names.
Don't forget, lower oil is bullish, not bearish, for 85% of this market.
It just doesn't seem that way.
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