Boeing is another one of these stocks which had been brilliant movers to the upside since the very end of 2012, only to suffer from its own success as 2013 progressed. Specifically, the uptrend became too steep and unsustainable. Beyond that, the one-way nature of the trend created zealots out of bulls in the stock, lending itself to extreme complacency and outright exuberance. While that is almost to be expected with a momentum stock like DDD, to see it in a mega cap like Boeing made the 2013 bull all the more intense.
Updating the daily chart, first below, you can see the steep trend finally snapped off, with an earnings gap down followed by even more follow-through. While the stock is too oversold to short here, the monthly chart suggests more downside is not only possible but is probable. Note the extension of price away from its 20-period monthly moving average on the second chart, which is still considerable. And, mind you, that 20-period monthly is still above the December 2012 primary breakout level, which is when I suggested the stock as a long-term long investment idea in this blog post.
I would keep any long trade attempts in Boeing to a bare minimum and with a tight leash for now–If the stock does not fully correct in terms of price then it needs time to digest the excesses of last year.
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sold down to about one-third of JO position.
Great job!
VNM. Maybe not but keep an eye on…
Sexy
Just came across your blog recently. I have been a new traders with approx 3yrs of experience. Your video analysis and daily posts are very informative and analytical. Appreciate all your work and dedication
Thank you, Alec. i appreciate that.
Hey Chess, what do you see in TWC? Looks like a tight base here above the 50 sma and 20 sma to me. Showed some strength yesterday but not so much today – thoughts on the name?
Check out UNG…huge engulfing candle, entered a starter in DGAZ