CASE STUDY – JUST BUY STUFF WITH PLANES?

• Airlines and cruise lines have become the new hot stocks of the market for a new generation of investors hoping for a repeat of the 2001 and 2009 industry recoveries.
• CEO’s, Read more

• March 10, 2018 Ethiopian Airlines new B7378 Max experienced the second hull loss after the October Lion Air crash giving cause for transportation regulators to ground the aircraft globally.

• The stock price pullback created what may be either a buying opportunity, a short selling setup, or an oversold bounce which Big Money Managers will sell into.

• To understand the effect on the stock price, we have to understand the dynamics of how aviation works.

Money Flow Index ( 80 is Overbought, 20 is Oversold): 72 Money Flow has been near an Overbought Level for over four weeks. There is a divergence between the stock price increasing and MFI flat or slightly decreasing.

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• Boeing has one of the strongest Investment Thesis in the portfolio but trades within a defined range offering opportunity to Trade Around a Core Position.
• The stock is currently due for a pullback.

 BOEING TECHNICAL ANALYSIS 20/12/2018

• Stop Loss sale price was triggered at $315.
• The Investment Thesis for Boeing is one of the strongest in the industrial space and the threats of the trade war and interest rates has to be evaluated against the Thesis.
• In looking to rebuild the position, the technical indicators have to approach the next Support Level.

TECHNICAL ANALYSIS BOEING (BA) 10/12/2018

Money Flow – is in an upwards trend, recovering from a November selloff. It is at a neutral reading of 45 which is neither overbought nor oversold.

Momentum is in an upwards trend.

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