Last week was pretty bad for stock markets as major indices ended the week lower. Although, they made a bullish reversal on Friday and today they pushed higher as markets opened, but one stock in particular continues to slide lower. I’m talking about Boeing shares, which continue to plummet ahead of the US open. If you haven’t heard, a Boeing 737 MAX jet crashed in Ethiopia on Sunday where 157 passengers were killed. We express our condolences here at FX Leaders for all lives lost, but we are in the trading business, thus we have to judge from that perspective.

This crash should have been enough to send Boeing stocks lower and they continue lower in pre-market trading. But several countries have called for a halt of Boeing 737 MAX jets for the time being. Ethiopia was the first after the tragedy of the Ethiopian Airlines, then came China and now Indonesia is the third major country to call for airline companies to leave this Boeing model in the garage.

Boeing prices are more than 10% down while the rest of the stock markets are climbing higher. This might be a good opportunity to buy Boeing shares, because once this wears off, Boeing shares will follow the rest of stock markets higher. But on the other hand, this is the second crash and there are only 350 planes of this model in operation.

That’s quite a big casualty ratio. So, the consumer confidence in this model might be washed out now which will be a headache for the company. I don’t know how they proceed in such cases – whether they call the airline companies and check the fleet of Boeing 737 MAX jets or if they will cancel this model altogether, never to be used again.

Boeing shares will open much lower when US session starts

But, if this is just a fluke or a mismanagement by the airline companies, then Boeing stocks will turn bullish soon. If it is a technical problem for all aircraft of this model, then the decline will continue. So, you have to follow how this will proceed if you want to trade Boeing. We will keep you updated though.