How do you profit from the ever-evolving world of aviation?
- Stay ahead of industry shifts.
- Understand basic price action and volume.
- And know when to take profits from low-risk, high-reward setups.
Consider my recent call on the aviation giant Boeing.
About ten days ago, I told conservative traders in my clientele to take profits because buyers were in control and price action was in our favor. The risk-reward ratio was 10:1, and we had five opportunities to lock in substantial gains.
Little did I know that the Alaska Airlines mid-air door blowout would happen.
Boeing’s stock tumbled by almost 10% following the Federal Aviation Administration’s urgent grounding of multiple Boeing 737 Max 9 planes.
The stock recovered slightly after the aviation giant issued inspection guidelines for the 737 Max 9. However, it remains down by more than 6% and could drop further if whispers of the FAA expanding its current investigation are true.
This isn’t the first time Boeing has had such challenges.
Over the past half-decade, Boeing’s stock has been on a roller coaster as production delays and safety concerns have affected investor sentiment.
The 737 Max 9 problems began with two crashes of the Boeing aircraft, the first an Indonesian Lion Air crash in October 2018, followed by an Ethiopian Airlines crash in March 2019, killing 346 people between the two incidents.
The FAA’s new investigation and the stock’s recent drop are a refreshing reminder of investors’ concerns about Boeing’s quality control and operational pace.
Looking back on our recent Boeing trade, I’m glad we took profits when we did because the Alaska Airlines incident is something nobody saw coming.
We could’ve lost money if we held on much longer.
This is why I always preach paying and protecting yourself.
Because you just never know what’s coming.
For more insight, see our strategy for taking profits when it matters.
Wishing you many blessings,
Anthony Speciale
