December 12, 2020, 7:27 pm EST
2020 Actual Trade: BA +21% Profits
When the timing is right, you need to make a decision quickly. “Double Gaps, No More Wait” describes this trading method very well on airline icon Boeing (BA) as shown in the featured chart.
We issued an article “Get Off the Ground: Boeing (BA)” on 11/16 as our stocks.
BA is one of the Dow Jones 30 stocks with 130 billion market capital started in 1916. Although BA is the most influential airline companies in the world, it is struggle with both MAX 737 crashes in 2018 and 2019 and recent COVID-19 pandemic, However, it is also important to note its turn-around story when MAX 737 problem is fixed and vaccine hopeful for potential bright future.
One straightforward way to capture this turnaround is to check its chart where investors and traders tell you they believe good things are coming to BA. When you see two strong gap-ups in the short-period of time, it means its upside momentum is worth of attention:
- Notice the first gap drove up BA from 5 month decline to upside direction with its price action moved from 160 to 180 in November. There was speculation that the US government may issue BA permission to re-run MAX 737.
- Five days later BA made another gap-up above 190 as a confirmation of MAX 737 news. There is no time to wait and it is the best time to check in. Thus, we added BA to the portfolio on 11/16 at 196.43.
- BA took off the ground and shot to the sky for the next couple weeks. We decided to took the quick profits +21% on 12/03 and exit all positions in the next few days