Monday, March 30, 2009

Weekly Stock Pick

Buy Sell Hold
The Upcoming Market Week Events

As I’m scanning the stock charts this early Monday morning looking for low-risk high-reward trade setups, I’m reviewing this week’s upcoming events that could affect the markets. President Obama is telling the Auto Makers to recreate themselves if they want more money, AIG is delaying providing money for real estate ventures, regulators are seeing new roles for Fannie and Freddie, defaults rise on FHA insured mortgages, UBS is seeing more write-downs, and oil is heading up it looks like.

Scanning for Low-Risk High-Reward Trade Setups

My scans popped up what looks to me as a low-risk high-reward short-sell trade on an aerospace defense company. I believe this stock and the rest of the market is in a bottoming process right now, and if we do see lower lows from here, those lows would be a very good buying opportunity in the short, intermediate, and long term. It looks as though the long term investors are possibly accumulating at current prices now which are resulting in this continued bear market rally. For the time being I’m going short on the following stock.

Sell Short Boeing – Ticker BA

Sell Entry: 38.90 to 37.07

Stop-Loss: 38.92

Take Profit Areas: 35.46, 33.85 to 32.24, 27.96 to 27.66, 23.34 to 23.09

Boeing Company Profile

The Boeing Company (Boeing) is involved in the design, development, manufacture, sale and support of commercial jetliners, military aircraft, satellites, missile defense, human space flight, and launch systems and services. The Company operates in five principal segments: Commercial Airplanes, Boeing Military Aircraft (BMA), Network and Space Systems (N&SS), Global Services and Support (GS&S) and Boeing Capital Corporation (BCC). BMA, N&SS and GS&S comprise the Company’s Integrated Defense Systems (IDS) business. The Other segment classification principally includes the activities of Engineering, Operations and Technology (EO&T), an advanced research and development organization focused on technologies, processes and the creation of new products. In December 2008, Boeing announced that it has completed its acquisition of Federated Software Group, whose engineering services and software system help track and distribute equipment and personnel for the United States Department of Defense.

Click here to review and Trial the Trading Software I used in determining my short position on BA. Enter I2S in the "coupon code" field to receive the 5% discount.

Click the Boeing Stock Chart for a larger view.

Boeing Stock Chart