Wednesday 29 January 2020

Horrible numbers from a rotting company

US equity indexes closed a little mixed, sp -2pts (0.1%) at 3273. Nasdaq comp' +0.1%. The Transports settled +0.4%. The s/t cyclical setup will favour the equity bears into the weekend/end month.




US equities opened moderately higher, but there was an opening reversal, with the SPX turning fractionally red in the 10am hour. A secondary wave higher into early afternoon failed to fully close the Monday gap.

Powell appeared...

As expected, it was a 'do nothing fed', and I'd expect the US President to issue further complaints in the coming days. The late afternoon saw some cooling, with a clear s/t cyclical rollover.

Volatility was subdued, with the VIX seeing a low of 14.94, but settling +0.7% at 16.39. The s/t cyclical setup will favour the equity bears across the remainder of the week/month.

Horrible numbers from a rotting company

Boeing (BA) posted earnings: EPS -$2.33 vs -1.83est. Rev' y/y -36.8% to $17.9bn vs 21.8bn. On any basis.... horrible.

The full interview with CEO Calhoun...

In reference to the 737MAX, Calhoun (t+2:45) "... it is a fundamentally sound airplane".

Perhaps Calhoun/Boeing's interpretation of the term 'fundamentally sound' is just different from yours truly.

Definitely not a 737MAX

I certainly don't see the 737MAX as flight worthy. Without getting into the details, the plane is inherently unbalanced, and should never have been granted permission to fly. Ohh, and yes, I'd also see the FAA as only marginally less 'problematic' than Boeing itself. Its become clear, even to some within the mainstream, that the FAA and Boeing are 'in bed together', and its contributed to two crashed planes, with the death of 346 innocents.

For the record, I have little other than contempt for Calhoun. Lets be clear, he has been part of the Boeing board since 2009, and by definition, part of the group that approved the 737MAX.

Whilst the stock settled today net higher by +1.7% to $322.02, broader price structure ain't pretty, with a giant H/S formation.

Any price action <285s will merit alarm bells, and offer the 140s. I'd accept that as 'crazy talk' for now, but then so was 'GE to the $7s', when it broke <$27 in 2017.

I will end by noting I do see Boeing as a company with serious internal rot, as one of Boeing's employees deemed the 737MAX as '... designed by clowns, and supervised by Monkeys'. 

The days continue to get longer

The setting crescent moon and Venus

Full moon... Feb'9th
Extra charts in AH (usually around 5pm EST) @

Goodnight from London
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