A strong week culminated Friday with a nasty short squeeze that brought the stock close to tripping a second ‘mechanical’ short at 385.60. In this case, I would recommend against trading the signal aggressively, since BA is throbbing with menace. It has held its ground against a barrage of negative news, including a second fatal crash of the 737 Max and some order cancellations that at some point could conceivably include a very big customer, China. DaBoyz have taken a huge stake in this company, mainly because its stream of earnings going out many years is more or less knowable and reliable. They will do whatever it takes to keep the shares aloft, whether to distribute them or accumulate. We can look at bearish option spreads if and when 385.60 is touched, but whatever we do, a cautious approach is warranted. ______ UPDATE (April 1, 10:18 p.m.): There is little point in trying to impede this take-no-prisoners rally. You can confidently use 407.70 as a minimum upside target for the near term. It is the midpoint pivot, on the 60-minte chart, where A= 353.67 on 1/23.
