I’m baffled by the price action of Boeing today.
Earlier today, President Donald Trump ordered Boeing to ground their 737 Max Fleet. As expected, this had an adverse effect on the Boeing stock, which went from $374 down to $364 between 2:27 pm and 2:50 pm.
What happened next perplexed me. Boeing stock made of V shaped recovery, and by 3:15 it was trading over $374 again.
Why did Boeing stock increase after the announcement that its fleet would be grounded?
Did Boeing decide now was a good price point to buy back the stock? Are the algos running wild?
Or is there something more going on? What do you think? Let me know in the comments below.