WTF Chart of the Day: Boeing’s 10 Year STOPD Play

Boeing has been the news darling this week for, well, bad reasons.

What does its chart tell us?

1. Very clear 10-year full swing up and down cycle.

2. Blue horizontal lines highlight the 10 year range from 1990 to 1999. 100% expansion of the range in red.

3. Dark red horizontal lines highlight the 10 year range from 2000 to 2009.

4. Green horizontal lines is 100% absolute range projection from 2009 low based on the 2000-2009 10 year range.

5. Blue up arrow points to the spike low in price at $56 on Aug 11, 2011.

6. 100% increase of $56 is $112 matching the projected target based on #4.

7. If Boeing stock price turning back down from the yellow zone marked on the chart, it is likely we will see $70 within coming few years.

Boeing is essentially the carry of the Dow run these past few years.

If it stops going higher, both Dow and S&P will have nowhere to go but down.

(Mocking the broker’s words in the movie Casino Royale, "No one expects this stock to go anywhere but up.")

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