Major Reversal On Boeing Spells Top
The Boeing Company (NYSE:BA) jumped sharply higher this morning after announcing earnings. The stock opened at $109.24 and collapsed straight down. It is currently trading at $106.84, -0.95 (-0.88%). Anytime a stock is trading at 52 week high or all time high and it gaps higher, there is a likely change of a reversal. Not only that, but if the reversal does take place, a longer term top is usually in place and the stock will trade lower. Wall Street is seeing this on many stocks including Dupont (NYSE:DD) yesterday.
This price action on leading stocks continues to tell the world a near term top is close, if not already at hand. Bear flags on stocks like BA and DD should be played as shorts going forward.