What Would You Do?

What Would You Do?

Let’s say there’s a stock in your portfolio that has the following poor technical inputs. What would you do with it?

1. Technical Score = 0
2. Below downward-sloping 50- and 100-day moving averages
3. Below cresting 200-day moving average
4. Downside gap last Wednesday
5. Negative daily momentum
6. Negative weekly momentum
7. Bearish price action relative to S&P
8. Below cresting 12-month moving average
9. Negative monthly momentum

All the above inputs are true for Boeing (BA). We believe it’s a sale here with risk to 150 next. However, it would not surprise us to see BA retest 100. Weekly chart for Boeing follows here.