The Boeing Company (NYSE:BA) jumped sharply higher this morning after announcing earnings. The stock opened at $109.24 and collapsed straight down. It is currently trading at $106.84, -0.95 (-0.88%). Anytime a stock is trading at 52 week high or all time high and it gaps higher, there is a likely change of a reversal. Not only that, but if the reversal does take place, a longer term top is usually in place and the stock will trade lower. Wall Street is seeing this on many stocks including Dupont (NYSE:DD) yesterday.
This price action on leading stocks continues to tell the world a near term top is close, if not already at hand. Bear flags on stocks like BA and DD should be played as shorts going forward.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.