BA: China Fleet Grounded

Out of respect, I'm not going to talk about the events that have transpired regarding BA's products, but it will cause ramifications to their share price and hopefully incentivize the investigation of the failure and design changes to possibly prevent it in the future. China has currently grounded 96 of their 737s in the aftermath, and this will cause their stock to accelerate on a course of mean reversion.

Note

I am not holding any position on BA since the sudden sharp downward bounce is now looking like a bullish harami (pregnant lady) doji, and it's got me nervous about trying to bear down on the bulls here. This is a DOW 30 stock, and I am monitoring it for a cheap buy in price myself (that > 50% run up since the Dec 24th low has me stomping my feet on missing it!) because they've got an incredible earnings growth for such a large firm.

Short term sentiment is down and will be for a little bit, but I anticipate some strong bullish action before their April 24th earnings call as an indicator of having moved past tragedy with a remarkably quick response to the 737 MAX landing nose down failure as well as incorporating a stronger emphasis in the manual methods outlined in how to address the mechanism in their international flight crew training programs.

Note

FBI investigation into the 737 MAX certification process. There's still plenty of bleeding to do here.

chuckination

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