The Boeing Company (NYSE:BA) Chief Executive Dennis Muilenburg testifies before a Senate Commerce, Science and Transportation Committee hearing on “aviation safety”

The Boeing Company (NYSE:BA) Chief Executive Dennis Muilenburg testifies before a Senate Commerce, Science and Transportation Committee hearing on “aviation safety”

The Boeing Company (NYSE:BA) Chief Executive Dennis Muilenburg testifies before a Senate Commerce, Science and Transportation Committee hearing on “aviation safety”

In two combative hearings on Capitol Hill last week, lawmakers pressed Boeing’s CEO Dennis Muilenburg on why he hasn’t given up his pay after two fatal crashes of its 737 Max planes that killed 346 people.

The embattled executive, whose compensation topped $23 million in 2018, the year of the first crash, said that is up to the company’s board. Others lawmakers called for a more drastic measure.

“Mr. Muilenburg, if you had an ounce of integrity, you would know that the right thing to do is to step down,” said Rep. Debbie Mucarsel-Powell, D-Fla., at the House Committee on Transportation and Infrastructure hearing on Wednesday.

“You are the captain of this ship. A culture of negligence, incompetence or corruption starts at the top and it starts with you” said Rep. Jesus Garcia, Democrat of Illinois, questioning Muilenburg on whether employees were pressured to cut corners to get the plane to market, accusations the executive denied. “I think it’s time that you submitted your resignation, don’t you?”

‘The right person, right now’

The Max, Boeing’s best-selling plane accounting for about 40% of its profit, has been grounded by regulators around the world since March after the second of two crashes, a flight ban that has rippled through Boeing’s supply chain to its airline customers.

“I think he’s the right person right now, given he’s worked through this process and the changes that need to be done to make the improvements necessary to get it ungrounded,” said Jeff Windau, a Boeing analyst at Edward Jones. “After that point, it depends on the view of the board.”

Despite the two fiery hearings, Boeing shares ended the week up 1.6%, slightly more than the broader market. Shares have lagged the broader market so far this year but are still up 7% as of Friday’s close.

“My take has been all along, the ultimate arbiter is the share price,” said Ron Epstein, Boeing analyst at Bank of America Merrill Lynch, who added that some investors have asked him whether Muilenburg will be replaced. “If you were to see the shares meaningfully under-perform for a while, that’s when the pitchforks come out.”

Different decisions

Lawmakers sharply questioned Boeing’s executives why the planes weren’t grounded after the first crash in October.

“I think about that decision over and over again,” Muilenburg said in the Senate hearing on Wednesday. “If we knew everything back then that we know now we would have made a different decision.”

But Muilenburg, who has been with Boeing since he was a college intern and became CEO in 2015, withstood calls to step down, saying instead he wants to see the crisis through, citing his upbringing on an Iowa farm.

A group of victims’ relatives said during the hearing that he “go back to to the farm, the mother of one of the crash victims told the Muilenburg after the questioning. “It has come to the point where you are not the person anymore to solve the situation,” the woman told Muilenburg.

“You’re no longer an Iowa farm boy,” said Rep. Peter DeFazio, chairman of the House committee, on Thursday. “You are the CEO of the largest aircraft manufacturer in the world. You’re earning a heck of a lot of money, and so far the consequence to you has been, oh, you’re not chairman of the board anymore.”

DeFazio blamed Boeing’s design and sales approach of the 737 Max on investor pressure.

“This all starts on Wall Street,” he told reporters before the hearings.

Technical Indicators

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

By the way, prices are vulnerable to a correction towards 357.24.

The projected upper bound is: 363.54.

The projected lower bound is: 326.48.

The projected closing price is: 345.01.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 24 white candles and 25 black candles for a net of 1 black candles.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 44.7345. This is not an overbought or oversold reading. The last signal was a buy 7 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 42.28. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 8 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -34. This is not a topping or bottoming area. The last signal was a buy 6 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 0 period(s) ago.

Rex Takasugi – TD Profile

BOEING CO closed up 5.280 at 345.190. Volume was 4% above average (neutral) and Bollinger Bands were 46% wider than normal.

Open     High      Low     Close     Volume___
340.980 345.190 339.500 345.190 867,804
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 341.39 365.42 369.21
Volatility: 35 33 35
Volume: 1,049,772 808,876 992,192

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

BOEING CO is currently 6.5% below its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of BA.N at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on BA.N and have had this outlook for the last 18 periods.

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