BA has lost -19% of its value off the price top after the two airplane tragedies; Indonesia and Ethiopia, on the verge of a bear market. Apparently, faulty Boeing software during takeoffs and landings and/or lack of pilot training, are causing the mishaps. The tragedies should not be occurring for a brand new 737 airplane that was supposed to basically fly itself. Well, twice it flew itself into the ground.
Off the top, BA drops from 446 to 362, nosediving 84 points, -19%. Using a multiplier of 7 as a rule of thumb for points in the Dow Jones Industrials Index, Boeing has created about 600 down points in the Dirty Thirty this month. BA created about -2.5% of the drop in the Dow Jones Industrials this month all by itself. The Ides of March are not kind to Boeing.
As typically happens in these scandals and problems, emails will likely surface showing that the company executives were aware of the problems but swept the trouble under the rug. Whistleblowers will likely come out of the woodwork humming negative tunes. No one should be surprised. This is standard practice for a crony capitalism system where profits always take precedence over human lives.
Price is in the neighborhood of the 200-day MA at 356 so a kiss would be in order. BA will probably test the 200 and bounce for a few days. However, the weakness for weeks ahead, through the intermediate term, will likely continue. Keystone has no position in BA and will probably not play it. There is likely an opportunity this week for a quickie long say buy mid-week and hold BA for only a few days say into the following week, the first week of April, but you would have to remain nimble. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
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