Boeing said late on Sunday the company “will continue to assess production decisions based on the timing and conditions of return to service, which will be based on regulatory approvals and may vary by jurisdiction.”

This may be the first time in over 20 years that Boeing would completely halt the production line of the 737. A result of the grounding of the 737-MAX deliveries of the aircraft have been halted. The company has been under strict watch by the FAA to ensure that the aircraft is held to the highest standard.

The U.S. Department of Transportation spoke on the subject of how Boeing placed unrealistic deadlines for the completion of the aircraft to its consumers. The FAA and DOT have been working closely with Boeing in every step of production from the raw materials used to the software in the avionics.

With production initially slowing down in the recent months the aircraft have been continuing to collect on Boeing field resulting in overcrowding of the space they currently have. With a limited amount of space there will need to be a time where the decision is made to hold off on producing new aircraft until the ones sitting on the tarmac are delivered. Which currently does not have a clear deadline.

In result the DOW Jones Futures are taking a major hit today due to the Pre-Market drop in Boeing today. Boeing is playing a huge role in the overall economic outlook of american production currently.

Suppliers

Heico Corporation (HEI) is a parts supplier and distributor. Their biggest client is currently Boeing as they aid in the process of providing parts and services for the Boeing aircraft production.

We have been trading Heico here in Air Market Group Trading for the last few days and have been able to clearly enter and exit trades with its clear price action. We are currently looking towards bearish trade set-ups on Heico with tight risk management. With news release of earnings coming out today the potential for rally’s and spikes in either direction are high.

Whenever trading before earnings you are exposing yourself to a great deal of risk. The potential of increase trading volume dramatically pushing price in a specific direction become increased.

As there is signs of potential halting of production Heico could potentially see some loss in revenue. As there is uncertainty towards the results of the 737-MAX this can bring economic pressure to Heico in the long run until the manufacturing starts up again.

Economic Pressure

With more aircraft sitting on the ground and less parts being delivered around the country this means less american workers contributing to the economy.

As we then produce less aircraft to be delivered to countries overseas we experience a drop in Gross Domestic Production for the United States which in turn can negatively affect the value of our dollar.

This could then in result push the Federal Reserves to make changes towards our economic policies to then control the growth in the United States. So many factors are tied into one another and taking into consideration the greater impacts of these events gives investors a clear picture towards being able to properly trade the market.

Keeping in mind that we still have yet to hear from Boeing what their take is on all of this. There has been a lot of talk from government officials although Boeing itself has yet to speak out on the subject leaving many individuals curious to hear their take.

Chart Analysis

Few of the stocks that we are going to be looking at for this week can be for in the Chart Overview for the week tab. In addition all of our trading idea can be followed on our TradingView page. The market is close to opening now and this is where the action starts.

Although all the hype of the market is surrounded around the opening bell its important to look beyond the first 30 min of the market. Understanding that time is a key element of the market will help create patience towards the proper trade set-ups that you know you can make.

The individuals who read this blog understand that value of being accurate and detail oriented in their trading. You are determined the becoming the best investor and gaining the skills and education you need to succeed. Keep up the great work!

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