Boeing (BA) was the big swing and miss for several traders this past year. Still, from a retail perspective, this remains a tough stock to buy very many shares of. If getting involved, one is going to have to be careful where one steps. I am flat the name. This is my actual homework, not the ramblings of a talking head without a real interest and without any skin in the game.
Now, there is evidence of the Pitchfork holding last night, though the lower wick of the Japanese candle did indeed pierce that spot. Which side of the lower trend line that this stock opens on is important this morning. The second line of defense would be the 38.2% re-tracement level off the late October through late January move, which is when the name really, really took off. That spot did provide a stop sign for yesterday's beat-down.
The third line of defense lives down around $307, a 50% re-tracement. That also happens to be precisely where the 50-day simple moving average (SMA) lives. This is where I live, too.
I am OK if the name finds support anywhere close to the last sale and takes off. I have successful longs in the aerospace arena. The idea here is to try to "steal" a few shares at an artificial, mechanically enforced discount; $307, I nibble. In the $290s, I try to get long a quarter of a position. Up here, I focus elsewhere. Sarge out.
(This is an excerpt from Stephen "Sarge" Guilfoyle's Morning Recon, which now appears exclusively on Real Money, our premium site for active traders. Click here for a free 14-day trial and receive Morning Recon every day, along with exclusive columns from Jim Cramer, James "RevShark" DePorre, technical analyst Bruce Kamich and more.)