Sagar Nandi
Possible aerospace stock bearish trade after earnings gap-up.

Boeing. $BA.

Snapshots are taken ~10:20 AM EST.

(1) Weekly near Watermark resistance. (2) Daily gapped up huge yesterday but created a doji at the top. Today it may end up being a Low Close Doji (thanks to Doc), (3) Volatility is very low as it is after earnings and it has Squeeze Release (green dot on the Bollinger bands).

If the price goes down even a bit, the people who bought at the gap up after earnings may start to sell, that is the weak hands will sell probably, (4) today in the intraday chart, the price went below Early Range Low. If the trade is taken with Short Call Vertical (say, Feb 370/400 Bear Call Spread) then the profit may be booked at half the max possible profit. Which may come if BA pulls back a little bit. Max loss is defined and should be within the position risk limit for each account (as is the CUE Guideline).

Valuation is medium. It has a nice recent quarter earnings growth. Fundamentally, it is NOT a weak stock.

Boeing's industry is weak today and is showing deceleration (Pace is magenta) in CUE Edge.

BA CUE Charts 2019-01-31_10-16-35.jpg  BA Edge 2019-01-31_10-23-22.jpg  BA Vital 2019-01-31_10-19-44.jpg 

Sagar Nandi
The attached chart is as of market close Friday 8th Feb.

In CUE 360 technique we take a trade only when there is a trade setup, or there are enough technical signals to take a trade. One thing we avoid is taking a short trade when the daily candle traffic light color is bullish (green). There is one exception to that, which is for the Bounce trade setup. However, BA did not have any Bounce short setup so that exception did not apply. 

Boeing's daily candle traffic light color continued to remain green since the original post and CUE traders would stay away from initiating the short trade.

In this way, you may add stocks to watch list to be ready. However, don't initiate the trade until the CUE guideline tells you to take the trade.

As marked on the chart:

1) The stock remained overbought (Stretched) till Friday 8th Feb market close.

2) The price never went below the low of the gap-up candle and Traffic Light candle color stayed green, bullish.

3) On Thursday 7th Feb, BA has displayed a Bearish Headwind signal. There is not reversal trade set-up as per the unambiguous checklist. One may apply trailing stop using CUE Protection signal if you are holding a long position.

BA Chart 2019-02-09_19-28-44.jpg 

Disclaimer: This site is for educational purposes only, explaining the use of CUE systems and techniques. It is not for trade advice. Trading involves risk. You and only you are solely responsible for the outcome of your trades.

CUE Elite
CUE Global & CUE Finder
CUE Edge, Vital, Index
Metastock Software (One-Time)
Metastock Data/Subscription
Data Region