Boeing Dreamliners and Nightmares

London’s Heathrow airport is shut as I write this due to a Boeing Dreamliner 787 jet fire.

I first wrote about Boeing as a long-term investing idea back in December 2012 in this post. We looked at the monthly chart and concluded that the “diamond consolidation” over the course of many years was ripe for a directional move. Given the increasingly constructive price action and volume pattern, the idea was to look at it for the long-term to move higher out of the diamond.

Updating that monthly chart on a day like today where it is in the news, you almost get the sense the stock would have sold off anyway. Note how the stock has been riding almost free and clear above its upper monthly Bollinger Band. This is quite bullish looking out the next few quarters. But I would not be adding to or initiating long-term positions here. In fact, trading around a core long-term position is likely correct, with the intention of adding back in the low-$90’s perhaps into the fall.

As long as the stock remains above $80 without too much heavy sell volume, the long-term investment thesis is intact.

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