Before You Buy Boeing... Check the Power Gauge

Boeing (BA) kicked off the Dubai Airshow with big news on Monday... In short, Emirates and flydubai ordered 125 jets from the aircraft maker. The deal is valued at more than $50 billion. [Chaikin PowerFeed]( Before You Buy Boeing... Check the Power Gauge By Vic Lederman, editorial director, Chaikin Analytics Boeing (BA) kicked off the Dubai Airshow with big news on Monday... In short, Emirates and flydubai ordered 125 jets from the aircraft maker. The deal is valued at more than $50 billion. As you might imagine, the deal made headlines around the world. And from there, the news got better for Boeing... You see, a few years ago, China halted orders of Boeing's 737 MAX jets. The world power's decision came after two of the company's bestselling planes crashed in 2018 and 2019. According to Boeing, roughly 90% of the 737 MAX jets already in China are now operating again. And yet, the country still hasn't lifted its ban on new orders. That might change in the coming days... Bloomberg reported over the weekend that China could end its freeze as soon as this week. Chinese President Xi Jinping is apparently considering the move as part of his meeting with U.S. President Joe Biden at the Asia-Pacific Economic Cooperation Summit in San Francisco. So this week's news is twice as exciting for Boeing. And not surprisingly, the company's stock popped higher after the two stories broke Monday. It jumped roughly 4% on the day. Now, many investors are wondering... Should I buy Boeing now? We'll tackle this question together today. As you'll see, the Power Gauge isn't convinced... Recommended Links: [Here’s What You Missed Yesterday]( In his first major prediction since calling the 2023 bank run, Marc Chaikin revealed where stocks (and gold) are REALLY going next... the exact date in 2024 that could see its biggest move... and how you could double your money 10 times along the way, without touching a single share. The presentation includes a free pick. [Click here to watch the replay]( (airing now). ['I Found the Answer to Retirement']( A subscriber from New York came forward with his unique story of how he retired early and worry-free WITHOUT stocks... thanks to ONE single idea that anyone can use. Now he sees 16%-plus annual returns with legal protections... and he NEVER has to worry about another market crash again. [Get the full story right here](. Folks, Boeing moved higher on Monday after back-to-back bits of good news. But even after that bounce higher, the stock is still down more than 50% from its March 2019 high. And for good reason... Airline-industry experts widely agree that Boeing has oversold itself. Put simply, the company was already struggling to deliver on its existing orders. Now, it has added another 125 jets to its backlog. And if China reopens for business, it could add more. It's great to have business. But it's not great if that business leads to years of bad publicity about delays and glitches. That's what has happened with Boeing recently. With that said, I don't pretend to be an airline-industry expert. But I do know what the Power Gauge says. And unfortunately for Boeing, the answer is clear right now... [Chaikin PowerFeed] A quick glance at the Power Gauge tells us all we need to know. Boeing earns a "bearish" overall grade right now. Three of the four categories are rated as "bearish" or worse. The Technicals category is the lone bright spot. It's "bullish" today. And frankly, it's what you'd expect in this situation... The stock produced a positive bump in volume and price trend rate of change. And the Power Gauge is reacting to these developments with a "bullish" grade for the category. But for Boeing, just about everything else looks rough today... The company is still broadly underperforming the S&P 500 Index. And according to our system, the aerospace and defense industry's strength is currently "neutral." The Power Gauge helps me see two other warning signs on Boeing's chart... First, the stock flashed a "relative strength breakdown" signal in early September. That was right before it started underperforming the broad market. It's down around 5% since then. Second, just last week, the company triggered an "overbought sell" warning. That means it's likely to pull back from its current price in the days and weeks ahead. In the end, our answer is clear... The Power Gauge is still "bearish" on Boeing despite this week's rally. So I'll hold off and look for other opportunities. And you should consider doing the same. Good investing, Vic Lederman Market View Major Indexes and Notable Sectors # Hld: Bullish Neutral Bearish Dow 30 +1.41% 10 12 8 S&P 500 +1.94% 147 244 106 Nasdaq +2.15% 42 43 14 Small Caps +5.45% 568 935 424 Bonds +2.27% Real Estate +5.40% 1 18 12 — According to the Chaikin Power Bar, Small Cap stocks and Large Cap stocks have turned somewhat Bullish. Major indexes are mixed. * * * * Sector Tracker Sector movement over the last 5 days Real Estate +4.66% Information Technology +4.15% Industrials +3.58% Materials +3.45% Discretionary +3.29% Financial +2.59% Communication +2.49% Staples +1.25% Utilities +1.19% Energy +1.15% Health Care -0.37% * * * * Industry Focus Health Care Equipment Services 1 31 38 Over the past 6 months, the Health Care Equipment subsector (XHE) has underperformed the S&P 500 by -35.72%. Its Power Bar ratio, which measures future potential, is Very Weak, with more Bearish than Bullish stocks. It is currently ranked #21 of 21 subsectors. Indicative Stocks [rating] IRTC iRhythm Technologies [rating] CNMD CONMED Corporation [rating] NVCR NovoCure Limited * * * * Top Movers Gainers [rating] ENPH +16.35% [rating] ARE +11.67% [rating] FSLR +11.43% [rating] SEDG +10.79% [rating] BXP +10.70% Losers [rating] MCK -3.57% [rating] CME -2.45% [rating] VRTX -2.37% [rating] COR -2.26% [rating] CAH -1.94% * * * * Earnings Report Reporting Today Rating Before Open After Close No earnings reporting today. Earnings Surprises No significant Earnings Surprises in the Russell 3000. * * * * You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, [click here](. You’re receiving this e-mail at {EMAIL}. For questions about your account or to speak with customer service, call [+1 (877) 697-6783 (U.S.)](tel:18776976783), 9 a.m. - 5 p.m. Eastern time or e-mail info@chaikinanalytics.com. 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