Note: Posts on this site are for education purposes only. They provide one firm’s insight on the markets. Not investment advice. See additional disclaimer here.
Note: Posts on this site are for education purposes only. They provide one firm’s insight on the markets. Not investment advice. See additional disclaimer here.
Note: Posts on this site are for education purposes only. They provide one firm’s insight on the markets. Not investment advice. See additional disclaimer here.
No matter what happens from here, Boeing has met conditions of a repeating set-up: Spring-to-Up-Thrust (not advice, not a recommendation).
A ‘set-up’, does not guarantee anything.
It just means, market behavior is such, there’s a potential for correlated (i.e., directional) movement.
The last update said there was a possibly of ‘spring failure’.
It gave specific conditions for potential failure … neither of which, happened: BA, did not open lower that day and the weekly low, was not penetrated.
All of which, brings us to now.
Early this session, BA, launched into up-thrust condition as the ‘result’ of news, link here.
Forecast In Advance
It’s important to note, potential for today’s move was forecast with this update, including upside target.
That forecast had nothing to do with ‘news’, but everything to do with how markets (tend to) behave.
So, here we are. 🙂
Boeing, BA, Daily
Penetration of the target area creates an up-thrust. On the daily we have ‘spring-to-up-thrust’.
Not only is the daily a repeating set-up, but the weekly is as well, shown here.
Problems, A-Plenty
The problems for Boeing have not disappeared.
The CEO hinted at this, when he clarified his comments at the conference (paraphrasing):
‘Moments later, he corrected himself and said he wants to ‘get ready’ for production ramp-up, in hopes to meet (target) production levels’
One doesn’t decide to instantly ramp up production and then ‘poof’, it happens.
Note: Posts on this site are for education purposes only. They provide one firm’s insight on the markets. Not investment advice. See additional disclaimer here.
Price action ‘failures’ provide and edge in market positioning.
In the case of Boeing (BA), from yesterday’s post, we’re expecting continued move higher off the ‘spring’ set-up.
So far, it hasn’t happened.
Instead, BA closed lower for the day; in the pre-market today (7:28 a.m., EST), it’s trading within ticks of that close.
So, what does it mean?
If, BA opens below yesterday’s low (200.88), we have a possible spring failure in the making; especially so, if price action prints a new weekly low, below 198.75 (not advice, not a recommendation).
Boeing BA, Daily
As this post is completed, BA is trading at 201.15, just slightly above the close of yesterday.
Note: Posts on this site are for education purposes only. They provide one firm’s insight on the markets. Not investment advice. See additional disclaimer here.
It’s never fun to wake up ‘in-the-red’ but that’s where Boeing BA-25-02 (short) was in the pre-market.
Based on the chart, with Friday’s lower close, price action had one of two choices; post lower and continue the decline or push higher from the spring set-up as shown.
Looks like we’re set-up to see if the (up-thrust) target area is met (not advice, not a recommendation).
With that said, the short was exited pre-market with an overall loss of 0.99%.
Boeing BA, Daily (pre-market)
Note, from the high on 5/14, to the low, last Friday, is Fibonacci 8 Days.
If the correlation remains intact, we’ll be looking for a potential target set-up, on Fibonacci Day 13.
Note: Posts on this site are for education purposes only. They provide one firm’s insight on the markets. Not investment advice. See additional disclaimer here.
Nippon purchase of U.S. Steel gets Trump’s approval for ‘planned partnership’, link here.
The ‘pattern’ begs the question: Can these upward ‘blips’ be sustained?
Blip Before Trip?
At this point, the answer to Boeing’s ‘blip’ from this site’s perspective is no (not advice, not a recommendation).
With that said, the short on Boeing (BA-25-02), could be stopped-out at the next session. Anything can happen.
Then, what about U.S. Steel?
U.S. Steel, X, Weekly
Price action has penetrated resistance which puts X, technically, in Wyckoff ‘Up-Thrust’ position.
There are several differences between the potential short set-up for X, and the one for BA.
First, the ‘spring’ portion on X, is missing, or not readily apparent like what can be seen here.
What Is & What May Be
Secondly, in Boeing’s case, events have already happened; production problems, design problems, quality control, labor disputes, bond ratings, already present.
Short trade (BA-25-02) anticipates, when ‘the blip is gone‘, focus on all things wrong with BA, will return.
The difference with U.S. Steel, a short would be in anticipation of things not yet present, to appear, such as the merger falling apart or some other event that negates the scenario.
Taking the two factors into account, no ‘spring’ portion of the set-up and anticipating things yet to appear, we’ll stand aside on shorting X, for now (not advice, not a recommendation).
Note: Posts on this site are for education purposes only. They provide one firm’s insight on the markets. Not investment advice. See additional disclaimer here.
Note: Posts on this site are for education purposes only. They provide one firm’s insight on the markets. Not investment advice. See additional disclaimer here.
Note: Posts on this site are for education purposes only. They provide one firm’s insight on the markets. Not investment advice. See additional disclaimer here.
Add to that, the debt, just months ago, one notch above junk, link here.
Then, add to that, links here and here, interest rates may be moving higher as we speak. All of which, could put the bond issuance plan (see ‘junk’ link, above) at risk.
Note, repeating pattern: Spring-to-Up-Thrust, link here.
The sidebar shows already short BA, as trade BA-25-01, with stop at today’s final high or last Friday’s high, whichever comes first (not advice, not a recommendation).
Note: Posts on this site are for education purposes only. They provide one firm’s insight on the markets. Not investment advice. See additional disclaimer here.
The Danger Point® 