Like Planes Falling Out of The Sky

The week ended with some more action from BA. They were not the only aviation-related stock of interest, the airlines were dropping like, well, probably best not to imagine what they were dropping like. Anyway, here’s the chart for Boeing:

For some reason the exit arrow has dropped off the chart, sorry. The exit was on the first green bar after the bounce. This whole trade lasted only about ten minutes. The entry was standard fare, with that MA cross being the only yellow flag. The pattern was so good though, so it wasn’t one to worry about.

There was a massive spike down late morning, but I wasn’t around to watch it. Looking back at the chart I think had I still been trading I wouldn’t have touched it with a bargepole — it wasn’t signaled and looked too violent for my liking.

As if coming along to prove that the big moves don’t only happen on the higher-priced stocks, UAL gave us this beauty:

This was an even better pattern. That said, the entry was a bit hairy, causing the old trigger finger to hover on the exit button briefly at the start of the trade. Things picked up though, or rather dropped down.

The trigger finger was called to attention again around 82.50 when it all got a bit sideways, but as those big red volume bars hint at, there was a lot of downward pressure. Reading that sort of thing in real time is what I was talking about in my piece on achieving fluency in trading. The reward was an extra drop, and although it popped back up quickly, hanging on in there added about $500 profit to this trade.

Like BA, there was some more on offer late morning. But with these nice wins (and others, care of a weak aviation sector) in the pot, I was already all done for the morning and off enjoying the unseasonably warm sunshine.