Saudi cuts official crude oil prices in battle for market share

**** Oil prices are on decline. Shale Oil boom in North America, slow transition to fuel efficient/Electric cards and more and more production of renewable energy is reducing demand of oil as predicted earlier. The biggest beneficiaries are Airline stocks like Southwest LUV, American ALL, Delta Air DAl etc
***** 

By Rania El Gamal and Reem Shamseddine

DUBAI/KHOBAR, Oct 1 (Reuters) - Saudi Aramco sharply cut official oil prices for Asian customers in November, the state-run company said on Wednesday in the clearest sign yet the world's largest exporter is trying to compete for crude market share.

The move comes amid calls from some within the Organization of the Petroleum Exporting Countries (OPEC) for action to shore up prices, as international benchmark Brent crude oil has slumped to a two-year low.

But the price cuts on Wednesday indicate Saudi is likely to follow its long-stated policy of supplying enough oil to world markets, while at the same time quietly competing with countries like Iraq and Iran to be the top supplier to fast-growing economies likeChina.

International benchmark Brent crude oilfutures reversed course after the Saudi prices were released, turning negative in late trade. At 1835 GMT they were trading down 0.45 percent at $94.25 a barrel.

"Brent is going down hard," one trader said. "It's going to retrace most of the gains from today on this."

Another trader said the fourth-straight monthly reduction made it appear Saudi Arabia may be trying to start a "price war" with rival producers. Regional oil rival Iran may face a budget deficit due to lower prices and Western sanctions.

Saudi slashed its flagship Arab Light selling price by $1 a barrel versus October to a discount of $1.05 a barrel to the Oman/Dubai average. Traders had been expecting a cut no bigger than 70 cents.

Saudi also cut prices to Europe and the United States by 40 cents a barrel.

Read full article at : http://www.reuters.com/article/2014/10/01/saudi-oil-osp-idUSL6N0RW4TV20141001

Markets look shaky, commodities scary...What to buy in this market? Probably Airlines stocks

Oil showed a remarkable turn around on Monday. Markets are also shaky a bit but many Airline stocks showed strong reversal signals as per Profit From Prices method.

You can consider these stocks for investment at currrent prices.
AMR has the strongest signal- REVERSE Buy

LCC and DAL also had U TURN signals with good jump in volume

As always, do your homework. We just try to include here what we are considering ourselves.

(FYI: Check the earnings projections for airline stocks. Even when Oil is so expensive, most of them are expected to earn $1 or more. P/E looks pretty reasonable at these prices.)

DAL (Delta Airlines) -FLAG/Pennant pattern: On its way to $12?

DAL: Delta Airlines stock is forming a Pennant/Flag pattern.
The DAL stock jumped from around 6.xx to 9.xx in a sudden move with high volume. Since then it is trading in a narrow range which is getting narrower on a declining volume.

Nice Call options play or a trading opportunity with a stop loss around 8.79/8.49 level.


The stock is in an accelerated upward move so I would keep an eye on any Open with a gap.

MESA: Mesa Air Group (NASDAQ: MESA): Watch this stock

MESA Air Group (Stock: MESA):

Nice patterns. The resistance line broken on high volume. A flag pattern on high volume. Volume going down now. To complete the Flag pattern, it might give another jump of 15 cents (similar to it going up from 16 cents to 30 cents.

Current price 24 cents. Stoploss at 2o or 22 cents.

CHINA CDC Corp (NASD: CHINA) Is it reversing?

CHINA CDC Corp (NASD: CHINA) Is it reversing?

Today I find a JUMP START (Profit From Prices) trend reversal signal in CHINA. Can be traded with stoploss at previous day's closing price.


CDC Corporation provides enterprise software, online games, and Internet and media services. The company's Software segment offers enterprise resource planning, customer relationship management, supply chain management, order management systems, human resources and payroll management, and business intelligence products. Its products are designed to support and automate the processes of an organization to help achieve company-wide integration of business and technical information across multiple divisions and organizational boundaries, such as finance, manufacturing, logistics, human resources, marketing, sales, and customer service, by utilizing common databases and programs that share data real time across multiple business functions. The company's Global Services segment offers information technology services, eBusiness consulting, and Web development and outsourcing, as well as a marketing database and marketing support service principally in Australia and New Zealand. Its Games segment offers massive multiplayer online role playing games and massive multiplayer online games, which are online games that allow users to interact with one another in a virtual world by assuming ongoing roles with different features. The company's China.com segment encompasses a range of businesses, including Internet media business, which is focused on online entertainment, and Internet products and services that target users in China via its portal network; and a Singapore-based travel trade publisher and organizer serving the travel and tourism industry in the Asia Pacific region. It operates in North America, Europe, the Middle East, Africa, and the Asia Pacific region. The company, formerly known as chinadotcom corporation, was founded in 1997 and is headquartered in Causeway Bay, Hong Kong.

JBLU- Jetblue- for those comfortable in airline industy

JBLU- Jetblue- the stock is near historical bottom. Last week, lufthansa agreed to buy stack in JBLU and the stock soared. Now it is retracing back to 6.40 level. In my opinion, it is likely that 6 dollar level will not be broken.
Airline industry is suffering due to high oil prices for the last 3/4 years but in my opinion airline industry fundamentals have changed dramatically after major bankruptcies and 9/11. The planes are more full and airliners have some pricing power back. Oil is a big problem.
However airline stocks make a nice turn around play in my opinion.
I would love to hear your opinions.

Merry Christmas and have great holidays