BOEING CO

328.06 +12.38 (+3.77%) Sell

BA does a dead cat bounce, it's still too early to buy into it

13 min read

BOEING CO ranked among the best performers on Tuesday. It delivered +3.77% to close at 328.06. It is currently trading -16% below it's 52 week high of 392.3.

[Themes containing BA]

Buy-and-Hold investors in BA experienced a maximum drawdown of -20.39% over the last three months. It fell by -10.17% during this strong bearish trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals. The net profit from Short signals was +2.24%.

Trend

BA has been outperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 16 Sep, 2016 to 3 Oct, 2018. Over the last 2 years 11 months and 14 days, BA outperformed the SP500 index on 54% days.

During the last three months BA was mostly loss making and delivered on average -0.15% per day. It's best return during this period (of +4.86%) was on Wednesday, 28 Nov, 2018. While it's worst loss in the same period (of -6.59%) was on Monday, 29 Oct, 2018. The longest stort-term trend during this period was 11 losing days, which started on 8 Nov, 2018 and ended on 23 Nov, 2018. This bearish trend lost -17.28% of investor capital.

During the last year BA had 6 profitable months and 6 loss making months. BA returned profits in fewer months than SP500 index. BA significantly outperformed SP500 index in Jan 2018, when it returned +19.38% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. BA had a longer winning streak of losing months than SP500 index. It went down in 3 straight months (from Oct 2018 to Dec 2018) during which period it delivered -14.85%. It is interesting to note that both BA and SP500 index significantly outperform during months when quarterly/annual results are announced.

"You have venture capitalists. We view them as experts who also help finance your company and give directions and also some pretty candid discussions about what you have to do better.

BA is currently seeing overall fall in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in BA's volatility from 27 Sep, 2018 to 20 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 19 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that BA has significant positive skewness in it's return distribution. This indicates that investors can expect BA to recover from drawdowns quickly. Which makes BA a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

Investors trading in BA derivatives at this moment can consider 'Covered Call' options strategy to receive better risk-adjusted returns.

SP500 index has more chance of extreme outcomes than BA. Therefore, SP500 must receive a lower allocation than BA in your portfolio. SP500 index usually has shorter drawdown period than BA.

Based on your interest in BA you may find it interesting to know that AYTU and NSPR have both shown remarkable performance and deserve to be on every investors' watchlist.

Want to improve your Portfolio's performance?

Spotalpha's Portfolio optimizer is all you need to improve your returns and reduce your risk.
Optimize Portfolio NOW
Following
Symbol Price {{retType}} | Tr.
{{detail.symbol}} {{detail.close}} {{detail.priceChange}}  {{detail.pctChange}}%  {{detail.name}} {{detail.trend}} 
 
If you liked what you read here ...

... we have a small favour to ask. Help us bring the power of algorithmic trading strategies to individual investors.

All content in this article was automatically generated by algorithms. This ensures that there are no human biases in the analysis provided. This approach to investing is not new and has been around for more than three decades. Yet, it has been available to only the most affluent or elite investors leaving individual investors to trade on emotions (such as fear and greed), intuition and poor analysis from third-parties. We want to change this.

We want to empower investors with all the tools and analysis required by them to make a rational investment decision.

If you found Spotalpha useful, consider making a contribution. For as little as $5 you can support our efforts and it takes less than a minute. Thank you. Contribute
Share with friends   WhatsApp   Facebook   Twitter