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Spirit AeroSystems Lays Off 450 of its WorkersSpirit AeroSystems ( NYSE:SPR ), an aerospace supplier, has announced plans to lay off up to 450 employees in the coming weeks due to slower delivery rates on commercial aircraft. The company is also in talks to be acquired by Boeing, which it spun off from in 2005. Spirit AeroSystems makes fuselages at its Wichita facility for Boeing's bestselling 737 Max plane, which deliveries have slowed due to a door panel blowout and safety crisis at Boeing. Spirit AeroSystems ( NYSE:SPR ) reported a quarterly loss of $616.7 million for the first three months of the year, with about 70% of its revenue last year coming from Boeing. The company is also in talks to be acquired by Boeing, which it spun off from in 2005. Boeing CEO Dave Calhoun said it is "more than likely" that the companies will reach a deal during the second quarter. The company is laying off several hundred members of its workforce in Wichita, Kansas, as it deals with high debt and slowed production at Boeing, its key customer. Spokesman Joe Buccino said the recent slowdown in the delivery rate on commercial programs compels a reduction to the workforce in Wichita. The memo, first reported by Wichita-based KSN, said about 400 employees would be affected. Spirit had already started to limit overtime and hiring as production declines due to lower output of 737 MAX jets following a January mid-air blowout on a Boeing plane. Stock Performance Spirit AeroSystems ( NYSE:SPR ) share is down 0.84% as of the time of writing trading along the 100-day Moving Average (MA) with a Relative Strength Index (RSI) of 39.68 which appears to be overbought.
NYSE:SPR
by DEXWireNews
Rebounding Air Travel & Rising China to Fire Up WTI CrudeBack in the 70s, oil prices spiked shockingly from $2.90 to $11.65 a barrel; gasoline soared 6-times from 20 cents to 120 cents a gallon in a matter of days. Fuel shortages forced factories to shut, airlines to cancel flights and stations crying "Sorry, No Gas Today". Fistfights ensued, including occasional gunfire. President Nixon called for America to end its dependence on foreign oil. In those five lines of history lies the genesis of both West Texas Intermediate (WTI) Crude Oil and WTI Crude Oil derivatives. This paper is set in two parts. Part 1 looks back at the remarkable 40-year history of CME Group’s WTI Crude Oil Derivative. Part 2 of the paper analyses the fundamental drivers fuelling WTI crude oil prices higher and an accompanying case study delivering 1.75x reward to risk. PART 1: ENABLING RISK MANAGEMENT IN ENERGY PRICES FOR FORTY YEARS Energy markets form the backbone of the global economy. Its prices can make or break nations. Unchecked volatility in energy prices can adversely impact every aspect of daily lives from food to work to shelter to travel. WTI is high-quality crude oil extracted from the Texas Permian Basin. Crude oil is then refined into gasoline, distillate, and kerosene. WTI is known as light sweet crude oil. It is considered "sweet" as it contains low levels of sulphur. Given the low density, it makes WTI "light". WTI Crude is a widely used global benchmark for oil prices. It is the underlying commodity for one of the most liquid futures contracts in the world – the CME Crude Oil Futures ("CL Futures"). CL Futures is a physically delivered contract with tight correlation to the physical oil market. Over one million contracts of CL Futures change hands daily on NYMEX, representing $7+ billion in notional values. Each lot of the CL Futures contract represents one thousand barrels of oil. CL Futures provide deep liquidity and high-quality market structure for hedgers and investors to participate in and protect against oil price action. NYMEX began trading CL Futures on March 30th, 1983. Among the pioneer commodities to list and trade on NYMEX was the WTI Crude. In November 1986, NYMEX launched American options (LO) on CL Futures allowing participants greater sophistication and flexibility in hedging against oil price volatility. In March 2008, the CME Group acquired NYMEX for $9.4 billion. In April 2014, CME introduced weekly options on CL Futures (LO1-LO5) with more granular strike prices. In December 2021 CME launched Micro WTI Futures, which further enable affordable access to the oil market. The CME also offers options on calendar spreads which are useful as tactical trading and hedging tools given the cyclicality in the oil market. PART 2: TURNING UP THE HEAT ON WTI CRUDE OIL PRICES Travel Rebound & China Re-opening. Air travel is rebounding. Global air traffic was at 75% of its pre-pandemic levels in November 2022 as per IATA. Pandemic restrictions in China held it back. With China having re-opened its borders, air traffic growth has taken off. The International Energy Administration (IEA) mentioned in its latest report that Chinese domestic air traffic had rebounded sharply in January and was well above pre-pandemic levels by February. The IEA predicts that overall global oil demand growth will increase by two million barrels per day (bpd) in 2023. It is slower than the growth of 2.6 million bpd in 2022 but nevertheless taking demand to its highest level of 102 million bpd. The OPEC expects crude oil demand to increase by 2.3 million bpd in 2023, with Chinese demand growing by 710,000 bpd. Both OPEC and IEA have lifted their forecasts for demand from China given the surprising reopening pace. Nevertheless, banking crisis, recession risk, and economic uncertainty continues to weigh in and might dampen demand. US Strategic Reserves Running at 40 Year Lows The US Department of Energy’s (DoE) Strategic Petroleum Reserve (SPR) is a reserve set up in 1975 following the oil embargo of the 1970s. These reserves are used to tackle tail events causing significant disruption to global oil supply. Last few years, there have been one too many tail events leading to the depletion of SPR. The DoE released a record 266 million barrels of crude from SPR to contain scorching inflation unseen in 40+ years. The US has signalled that it may take several years to refill the SPR and that it may never reach previous baseline of 600 million barrels given high prices. Refilling the reserves can take a long time. In the 80s, it took DoE 15 months to fill 100 million barrels. In the 2000s it took even longer – almost 2.5 years – to fill 100 million barrels. Regardless of time taken, the need to replenish is certain. The DoE has signalled that it will refill when prices trade between $67-$72 a barrel. Hence, this price range serves as a strong support and floor for WTI prices. Rotation out of Risk Off Assets. Collapse of SVB and Credit Suisse has lit up forgotten fears. Financial markets suffered a massive tailspin. Liquidity easing measures by central banks have helped assuage worries but contagion concerns remain. Heightened economic uncertainty and recessionary fears plunged crude prices to their lowest levels in more than a year, even below the SPR replenishment price range. Risk sirens are blowing loud. Unsurprisingly, investors have sought shelter in haven assets such as gold and treasuries. If measures to contain the crisis proves adequate, investors will rotate back fuelling a breezy recovery in energy prices. Supply disruptions serves as a solid tailwind. Oil demand is critical, so is supply. Last December, OPEC+ conveyed its intent to cut output by 2 million bpd in 2023. Although pre-existing production shortfalls have kept OPEC+ output below their targets, these cuts are expected to translate to 1 million bpd of real supply shortfall. Adding fuel to fire, last week a legal dispute in the middle east has led to Iraqi oil exports via Turkey to be entirely halted, disrupting 400k bpd of supply. Oil prices are sensitive to supply disruptions. Persistent disruptions will drive prices high. MARKET PARTICIPANTS ARE STILL NET LONG AND BULLISH CRUDE OIL The CFTC COT report dated March 21 indicates that investors in the Other Reportable category nearly doubled their net long position on CL Futures from before the start of the banking crisis. However, the Managed Money category showed that these investors reduced net long positions by 65%. These investors have rotated into safe havens such as precious metals. Despite the reduction, these investors still remain net long on CL Futures. A shift in market sentiment could quickly have these investors piling into CL Futures. The put/call ratio on CL options is 0.56. For every oil bear, there are about two oil bulls. In fact, this ratio has actually fallen since the banking crisis began suggesting that investors are even more bullish on oil. TRADE SET UP This case study argues that a long position in WTI Crude Oil Futures expiring in September 2023 will deliver a 2.1x reward to risk ratio given the positive price drivers. CLU2023 offers exposure to 1,000 barrels of WTI crude and has a maintenance margin of $5,000 per lot. ● Entry: 72.78 ● Target: 79.53 ● Stop: 68.92 ● Profit at Target: $6,750 ● Loss at Stop: $3,860 ● Reward-to-Risk Ratio: 1.75x To hedge or trade with granular precision and for affordable access, investors could opt for CME’s Micro WTI Crude Oil Futures which offers exposure to one hundred barrels with a maintenance margin of $500 per lot. MARKET DATA CME Real-time Market Data helps identify trading set-ups and express market views better. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com DISCLAIMER This case study is for educational purposes only and does not constitute investment recommendations or advice. Nor are they used to promote any specific products, or services. Trading or investment ideas cited here are for illustration only, as an integral part of a case study to demonstrate the fundamental concepts in risk management or trading under the market scenarios being discussed. Please read the FULL DISCLAIMER the link to which is provided in our profile description.
NYMEX:CLU2023Long
by mintdotfinance
Is WTI Crude Set to ReboundIn this week’s case study, we analyse a long position on Micro WTI Crude Futures (February) with a potential target of $82.30/barrel and a stop loss at $67/barrel, yielding a reward to risk ratio of 1.15. Last week, we delivered a case study with a short position on WTI Crude Oil futures with entry at $77.80/barrel and exit at $73.65/barrel. This worked as planned with the target price being triggered within two days. Now with price trading at $74.10/barrel and strong support between $67-$72/barrel, this case study argues that this presents an interesting opportunity to enter into a long position in WTI Crude Oil futures. Bolstered by demand from China which is expected to recover, a long position in Crude Oil Futures provides us hedge in the medium-long term against limited downside risk. Replenishment of US Strategic Petroleum Reserve (S PR) The Biden administration is reported to replenish its S PR between the price range of $67-$72/barrel. WTI Crude is currently trading in that price range which could trigger S PR replenishment. More than 200 million barrels has been drawn down to supplement the demand for US crude oil amid high international prices. However, it is worth noting that according to the US Department of Energy, there are no active purchase offers yet. China Easing COVID Curbs Last week, China announced the most significant relaxation of its COVID curbs since the pandemic first erupted three years ago. Rules covering quarantine times, movement of people, and lockdown as well as testing were eased in the country. Nevertheless, COVID cases in China remain high. Although official numbers have fallen to a monthly low, straining medical infrastructure points to high level of infected cases. China is the second largest consumer of Crude Oil in the world, although they have largely been buying Russian Crude Oil at a discount, as demand increases, it will likely spill over into purchases of international oil as well impacting prices of Crude Oil. Fed Rate Decision All eyes are on the US Federal Reserve’s interest rate decision due on December 14th. According to the CME FedWatch tool, there is a 75% probability of a 50-bps (0.5%) rate hike at this meeting, slowing from the record 75-bps rate hikes announced at previous four meetings. Over the past two weeks, economic data points to limited impact of Fed rate hikes leading to fears that the Fed may continue with 75-bps rate hike. Tanker Delays Over the past week, several tankers carrying Russian crude oil were halted at the Turkish strait due to confusion surrounding the G7’s imposed sanctions on Russian crude tanker insuranc e. As of Monday, this jam started to be cleared. However according to a Bloomberg report, some 12 tankers had still not submitted the necessary documents confirming insu rance liabilities. As these delays might take more time to resolve, this might positively impact demand for WTI Crude Oil. EIA Short Term Energy Outlook The US Energy Information Administration (E IA) released its short-term energy outlook last week in which they stated that refinery utilization for 2023 was expected to remain at a five-year high. Although this will lead to lower prices for distillate and other petroleum products, it ensures high demand for WTI Crude leading to a strong price support. Technical Signals from the COT Report WTI Crude is currently trading at $70.67/barrel, which is right below its S1 support according to the Pivot indicator which stands at $71.48/barrel. The range of $67-72 provides strong support as mentioned before. Both RSI and Stochastic indicators point to oversold which could indicate a recovery in the short term. In the latest Commitment of Traders (COT) report from December 6th, we can see that money moved out of swap positions to directional positions. Long positions held by managed money increased sharply by 11.9%. Overall long position OI increased by 4.4%. Still, this was on par with the increase in short position OI which also increased by 4.4%. Short OI saw producer positions increase far more than long OI. Trade Setup CME’s NYMEX Micro WTI Crude Futures provide exposure to 100 barrels of WTI crude oil. They have a maintenance margin of $750 at the time of writing and provide a cost-efficient way of getting exposures to the movements in Crude Oil prices. Long Position on CME NYMEX Micro WTI Crude Futures – February 2023 Contract Entry: $74.10/barrel Take Profit Target 1: $85.00/barrel Take Profit Target 2: $82.30/barrel Stop Loss: $67.00/barrel Establishing a long position on Micro WTI Futures (February) with an entry price of $74.10/barrel with a potential take profit target of $82.3 could provide exposure to a recovery in a WTI crude prices. This would yield 109.3% returns or $820. A stop loss at $67.0/barrel could protect against a further downward move. This is placed at the lower end of the expected range of S PR replenishment which is expected to provide strong support. The stop loss, if triggered, would lead to a loss of $710 or 94.6%, providing a reward risk ratio of 1.15. Alternatively, holding the position until the second target of $85/barrel would yield $1,090 in profit or 145.3%. CME’s full-size NYMEX WTI futures provide exposure to 1,000 barrels of WTI crude with a maintenance margin of $7,300 at the time of writing and provide improved liquidity in case of larger positions. MARKET DATA CME Real-time Market Data help identify trading set-ups and express market views better. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com DISCLAIMER Trade ideas cited above are for illustration only, as an integral part of a case study to demonstrate the fundamental concepts in risk management under the market scenarios being discussed. They shall not be construed as investment recommendations or advice. Nor are they used to promote any specific products, or services. This material has been published for general education and circulation only. It does not offer or solicit to buy or sell and does not address specific investment or risk management objectives, financial situation, or particular needs of any person. Advice should be sought from a financial advisor regarding the suitability of any investment or risk management product before investing or adopting any investment or hedging strategies. Past performance is not indicative of the future performance. All examples used in this workshop are hypothetical and are used for explanation purposes only. Contents in this material is not investment advice and/or may or may not be the results of actual market experience. Mint Finance does not endorse or shall not be liable for the content of information provided by third parties. Use of and/or reliance on such information is entirely at the reader’s own risk. These materials are not intended for distribution to, or for use by or to be acted on by any person or entity located in any jurisdiction where such distribution, use or action would be contrary to applicable laws or regulations or would subject Mint Finance to any registration or licensing requirement.
NYMEX:CL2!Long
by mintdotfinance
Is US Oil Running Low on EnergySUMMARY Lowered demand projections for Crude Oil as per IEA and OPEC+, softer demand for Crude Oil in China despite partial loosening of restrictions as per EY, the G7-Russian Crude price cap which would lower demand for WTI Crude. We are short-term bearish on WTI Crude Oil. However, it should be noted that there may be very limited downside in price as the Biden administration plans to replenish the Strategic Petroleum Reserves at prices between $67-$72. As such, this case study argues that a short position in CME’s NYMEX WTI Crude Oil Futures (February 2023) could provide an interesting trading P&L profile at an entry price of $77.80/barrel with a target of $73.65/barrel with a reward-to-risk ratio of 0.86. A stop loss could be set at $82.61/barrel or the Pivot Point. OIL PRICE HISTORY After temporarily dipping at the start of the pandemic, WTI Crude Oil prices rallied through 2021. This was a result of demand bouncing back rapidly as economies re-opened post-pandemic. This led to dwindling oil reserves in the US and the wider OECD countries. Shortage was further exacerbated by OPEC+ choosing to boost supply gradually. Finally, prices were pushed even higher given the Russian-Ukraine conflict which threatened to limit the available supply of Crude Oil, of which Russia is the third largest producer according to the IEA. However, following this peak, prices started to cool off as high inflation dampened demand for oil. This led WTI to erase most of its 2022 gains. WTI prices have retracted back to the start of 2022 twice since then, in September 2022 and in November 2022 again. However, price quickly rebounded off this level as OPEC+ announced supply cuts totaling 2 million barrels per day (real cuts were estimated at 1 million barrels per day as mentioned by Prince Abdulaziz, Saudi Minister of Energy). OPEC+ maintained its lowered output targets at a meeting on the 4th of December 2022. OPEC also lowered its oil demand forecast for 2022 and 2023 by 100k barrels per day in November. WTI price has declined 43% from its peak in March. CHINA China is experiencing a sharp resurgence in COVID-19 cases this year. Combined with the government’s zero-COVID policy, this led to large scale and strict COVID curbs. This further impacted the demand for oil, of which China is the 2nd largest consumer. However, at the end of last month, Beijing notably changed its stance and has started to ease restrictions somewhat in parts of the country. Expectations are for China to open in entirety in Spring 2023. According to EY, demand for Crude Oil in China is expected to be 1.2M barrels per day lower in Q4 2022. This further provides a short-term bearish outlook for crude oil. STRATEGIC PETROLEUM RESERVE To better manage spike in oil demand following the pandemic, Biden administration has been drawing large amounts of crude oil from its Strategic Petroleum Reserves. They drew nearly 200 million barrels from the Strategic Petroleum Reserves in 2022. In a mid-term election year, the administration was forced to resort to this to tame sky-high gasoline prices at pumps. The Biden administration’s move has been seemingly successful in managing the price of gasoline which has declined from $5 to $3.5. Unsurprisingly, this has also drained a large portion of the US strategic reserves, taking it down to 389.1 million barrels, its lowest level since 1984. The Biden administration has stated intentions to replenish the Strategic Petroleum Reserves when prices are between $67-$72 per barrel. This provides a potential floor on the price of oil if the plan is followed through, limiting potential downside in price. Starting end of November, the administration followed its promise to wind down the use of the Strategic Petroleum Reserves. They drew just 1.4 million barrels in the week, far lower than the average of 6 million barrels/week over the past two months. However, this led to crude inventories in the country to plummet sharply by 12.79 million barrels. Still, this poses a potential challenge for the administration as it can no longer supplement crude supply in the country using Strategic Petroleum Reserves leading to higher demand in the open market. US CRUDE INVENTORIES Crude oil inventories in the US have seen large declines over the past three weeks. Contrasting this with Gasoline and Distillate stockpiles, which have instead increased. This is a result of high crack spread, which represents refining profit margins. As a result, US refineries are running at 93% of capacity highlighting that although crude oil stocks have been declining, it is primarily due to windfall margins available to refiners instead of high demand for crude oil. G7-RUSSIA PRICE CAP The EU has imposed an embargo on imports of Russian Crude Oil by sea using G7 and EU tankers. G7, Australia, and 27 EU countries imposed a price cap on Russian crude oil transported by ship. The cap is aimed at reducing the margins that Russia makes on crude oil sales which it is alleged to fund its military actions in Ukraine. The price cap provides third countries the ability to acquire Russian Crude Oil at or below the price cap. The price cap was set at $60 per barrel, while Russian Crude Oil closed at $67 per barrel on Friday. The level will be reviewed every two months, starting in mid-January, to make sure it stays at least 5% below the average price for Russian crude as determined by the IEA. Each change in the cap will be unanimously agreed by all 27 countries of the EU and then by the G7. The price cap makes it challenging for Russia to sell its Crude Oil at a higher price as most shipping companies are based in the G7. This could provide a source of cheaper crude for countries that still trade with Russia, thereby lowering the demand for the more expensive WTI Crude oil. Notably, Russia stated that it would not accept the price cap and would not sell its oil subject to the price cap, even if it is forced to curtail production. Additionally, Russia is already selling its Crude Oil at discounted rates to China and India relative to WTI or Brent. TECHNICAL SIGNALS AND PEEK INTO COT REPORT CME’s NYMEX WTI Crude Oil Futures (February 2023) closed at $77.37, below the Pivot Point $82.61 as on Tuesday. R1 from the pivot indicator was at $91.62 while S1 was at $71.48. CME’s NYMEX WTI Crude Oil futures hit a low of $73.6 on November 28 before rebounding. Stochastic indicator was at neutral as on Monday while RSI recently intersected its declining SMA which could point to a potential reversal in the downtrend. 100-day moving average is currently declining and stands at $87.4757, in case the short-term moving average (10 days) intersects this, it could point to a potential breakout. 10-day MA is currently at $78.77. For now, the 100-day moving average acts as resistance. According to the CME Commitment of Traders tool, we observe that Users, Managed Money, and Swap Dealer short positions declined between November 22 and November 29. Other reportable and non-reportable short positions went up. Long positions also declined by a similar margin while spread positions increased 3.3%. ATM Implied Volatility from WTI Crude Oil options on CME was at 48.25% on Friday, down from ~53% in the prior week. This provides a daily expected move of 3.04%. As such the low on 28/November is within 1x standard deviation of the pivot support ($73.65) and 2x standard deviations of the pivot support is at $75.83. TRADE SETUP CME NYMEX Micro WTI Crude Futures provide exposure to 100 Barrels of WTI Crude oil with a maintenance margin of $750. This provides a cost-effective way to get exposure to movements in Crude’s price. Short Position on CME NYMEX Micro WTI Crude Futures – February 2023 Contract Entry: $77.80/barrel Take Profit Target 1: $75.83/barrel Take Profit Target 2: $73.65/barrel Stop Loss: $82.61/barrel Establishing a short position CME NYMEX Micro WTI Crude Futures (February) with an entry price at $77.80/barrel with a potential take profit target at $75.83/barrel by February could provide exposure to a short-term correction in the price of WTI crude yielding 26.27% returns or $197. A stop loss at the Pivot Point $82.61/barrel would protect against an unexpected rally resulting in loss of $481 or -64.13% providing a reward to risk ratio of 0.41. Alternatively, holding the position until 1x standard deviation of IV of ATM option above the pivot point would lead to 55.33% returns or $415 resulting in a reward-risk ratio of 0.86. CME’s full-size NYMEX WTI futures provide exposure to 1,000 barrels of WTI crude with a maintenance margin of $7,300 at the time of writing and provide improved liquidity in case of larger positions. MARKET DATA CME Real-time Market Data help identify trading set-ups and express market views better. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com DISCLAIMER Trade ideas cited above are for illustration only, as an integral part of a case study to demonstrate the fundamental concepts in risk management under the market scenarios being discussed. They shall not be construed as investment recommendations or advice. Nor are they used to promote any specific products, or services. This material has been published for general education and circulation only. It does not offer or solicit to buy or sell and does not address specific investment or risk management objectives, financial situation, or particular needs of any person. Advice should be sought from a financial advisor regarding the suitability of any investment or risk management product before investing or adopting any investment or hedging strategies. Past performance is not indicative of the future performance. All examples used in this workshop are hypothetical and are used for explanation purposes only. Contents in this material is not investment advice and/or may or may not be the results of actual market experience. Mint Finance does not endorse or shall not be liable for the content of information provided by third parties. Use of and/or reliance on such information is entirely at the reader’s own risk. These materials are not intended for distribution to, or for use by or to be acted on by any person or entity located in any jurisdiction where such distribution, use or action would be contrary to applicable laws or regulations or would subject Mint Finance to any registration or licensing requirement.
NYMEX:CL1!Short
by mintdotfinance
Oil Prices Struggle amid Growing Recession Fears and Fed HikesEarlier today, oil prices were on the rise after the shutdown of the Keystone pipeline. However, this rally was quickly wiped out as sellers attacked the market, pushing prices even lower. The oil market has been struggling due to growing concerns about a potential recession and the belief that central banks have tightened monetary policy too much. This fall in oil prices has also had the side effect of reversing inflation, which can be seen as a positive for central banks. Despite this, there is some support for oil prices at the $70 level, as this is when the White House talked about refilling the Strategic Petroleum Reserve (SPR). Overall, the outlook for the oil market remains uncertain, with concerns about a potential recession and the actions of central banks continuing to weigh on prices. However, some analysts believe that a relief rally is still possible in the coming days and weeks, as the shutdown of the Keystone pipeline and other factors could provide support for oil prices. Jargon Explained Strategic Petroleum Reserve The Strategic Petroleum Reserve (SPR) is a reserve of crude oil stored by the United States government in underground salt caverns. The SPR was created in response to the oil embargo of the 1970s, and its purpose is to provide a emergency supply of crude oil that can be quickly released onto the market in the event of a supply disruption. Keystone Pipeline The Keystone pipeline is a system of oil pipelines that transport crude oil from Canada to refineries in the United States. The pipeline system consists of two phases: the first carries oil from the oil sands of Alberta, Canada to refineries in Illinois and Oklahoma, while the second phase, known as Keystone XL, would carry oil from Alberta to refineries on the Gulf Coast of Texas. The Keystone pipeline has been the subject of controversy, with opponents arguing that it poses risks to the environment and to local communities.
FX:USOILShort
by JoelWarby
Spirit AeroSystems (NYSE: $SPR) Uptrend Likely To Continue! 🛬Spirit AeroSystems Holdings, Inc. designs, engineers, manufactures, and markets commercial aerostructures worldwide. It operates through three segments: Commercial, Defense & Space, and Aftermarket. The Commercial segment offers forward, mid, and rear fuselage sections and systems, struts/pylons, nacelles, and related engine structural components; and wings and wing components, including flight control surfaces, as well as other structural parts. This segment primarily serves the aircraft original equipment manufacturers (OEMs) or engine OEMs of large commercial aircraft and/or business/regional jet programs. The Defense & Space segment provides fuselage, strut, nacelle, and wing aerostructures primarily for U.S. Government defense programs, including Boeing P-8, C40, and KC-46 Tanker. This segment also engages in the fabrication, bonding, assembly, testing, tooling, processing, engineering analysis, and training on fixed wing aircraft aerostructures, missiles, and hypersonics works, such as solid rocket motor throats, nozzles, re-entry vehicle thermal protections systems, forward cockpit and cabin, and fuselage work on rotorcraft aerostructures. The Aftermarket segment offers spare parts and MRO services, repairs for flight control surfaces and nacelles, radome repairs, rotable assets, engineering services, advanced composite repairs, and other repair and overhaul services. The company was formerly known as Mid-Western Aircraft Systems Holdings, Inc. Spirit AeroSystems Holdings, Inc. was founded in 1927 and is headquartered in Wichita, Kansas.
NYSE:SPRLong
by Bullishcharts
1
Spirit Aerosystems a play or not?Spirit Aerosystems isn't spirit airlines. It's own by boeing and makes parts for boeing and inovates in the aerospace sector and from its website is also into space with a virgin galactic partnership. Now I've been watching this for awhile, yet I'm still not sure if i should go in but heres some levels I'm looking at. Current findings -Their earnings is they are losing money, yet they are tied into boeing and if boeing isn't making money they aren't either -They have ties to the space sector, which comparing it to the other space stocks, they are underperforming -They pay divends, so you could become a long term holder and get paid while hoping this company can recover after COVID -Boeing has had a 34% drop in its price around June, yet SPR has had about a 50% drop giving this stock a potentional upside of 20% to go side by side with boeing. This reflects that SPR is struggling and can be shown as this company wants to layoff over 1400 people. From a quick search they have just over 5k people working from them. Big hit on their workforce short term. Buy In -Now I've market that you may take a position at this level with a 20% bounce back, yet I'll be watching for two key levels. 1: Sub 20 dollars since to be a fair value and has gone down as low as 16.70 (with dropping lower, yet springing back). Sub 20 dollar since like a good start if you want to dip your toes in. 2: An optmistic bull and don't mind gambling is taking a position in when it gets too 24.12-24.5 hoping for a breakout. Now this same level could be profit takers, yet around May 27th when it hit this level it broke out and giving a $12 high profit per a share. Roughly 30% return. Final Thoughts Its interesting stock and will just wait if it goes sub 20 and you could be worried if boeing would cut this company to cut boeing's loses, yet thats the doom mindset and don't think that will happen. I'll remain Neutral on this stock
NYSE:SPR
by nathanielx9
SPR has Massive Upside for Long-Term InvestorsThe support levels (~19.00 and ~17.00) for SPR have been tested on many occasions. This beaten-up stock has very little downside at current levels. The dismal outlook of the aerospace industry has already been priced in. SPR has a partnership with Virgin Hyperloop to manufacture infrastructure needed to build the next generation of high-speed rails. For a company trading at book value and potential for huge growth (with the rebounding aerospace industry, defense industry tailwinds, and a revolutionary rail system), investing in SPR could bring massive returns for long-term investors with patience.
NYSE:SPRLong
by DanEllsworth
Spirit AeroSystems 30d Short $17 - Floor Hasn't Hit YetNYSE:SPR Spirit AeroSystems will rebound, but not right now. All signs point to the price on a decline to below $17. They have halted production for Boeing jets indefinitely, cutting pay, and furloughing workers. Stimulus package will not save them in the short term, as they are too heavily reliant on their largest customer Boeing (80% of revenue). Once the floor has hit, I will look to value buy this stock. I support what the Bears say: 'With its improved cash flow, Spirit will embark on value-destructive acquisitions. Customer concentration with Boeing (roughly 80% of revenue) leaves Spirit vulnerable to unfavorable negotiations and steep price step-down demands. Following 15 years of growth, the aerospace cycle will turn over, causing Boeing and Airbus to cancel deliveries and throttle back production, negatively affecting Spirit.” - Morningstar May 31, 2019 Be effective and happy trading! - Darell
NYSE:SPRShort
by mykonchince
3
SpreadCoin Might Gain 50%SpreadCoin found the bottom at $0.23, that has been tested on the 13th of June. Since then price went up and today breaking above the 200 Moving Average, not to mention that price produce a new higher high. This could be the beginning of a corrective wave up, or even a trend reversal. The very strong resistance is near $0.5 area, that is confirmed by two Fibonacci retracement levels applied through the two highs established on 30th of April and 23 of May. If the resistance will be reached, SPR/USD will gain over 50% and this could happen in a very near future. The downside risk at this point is very low, however it SPR will go below already established support at $0.23, bears could once again begin to dominate this SpreadCoin.
SLong
by CryptoPAMM
SpreadCoin (SPR) Incredible Potential (1400% Profits Potential)Let's start by looking at the SpreadCoin (SPR) chart. This chart starts February 2017, you can see how this coin did for over a year, and some dates to look at when each bull run happened. SpreadCoin (SPR) daily chart shows the following signals: - You can also see the tops reached on each past bull run, both marked with a blue dotted line. - The bottom is marked with a black line, this is the bottom reached after the last bull run, which is 0.00002741 hit on late March 2018. - We can see a broken trend line (red dotted line). Which is followed by a strong breakout and we are preparing to move up. - The RSI is very bullish as well as the other indicators (DMI, OBV and STOCH). - The MACD is starting to curve upward after a long period of positive divergence. - The weekly chart is also looking good for a nice bull run. - The first strong resistance is at 0.000246 which is about 4x our buy in price. If SPR can break that price, we then aim for 0.000825 which is about 15x our entry point. This can be a short run, definitely, but the potential is definitely strong. - Now let's get into the details on how to trade SpreadCoin (SPR). ******* SpreadCoin (SPR) Trade Analysis by Alan Masters ******* TRADE INSTRUCTIONS Buy-in: 0.000044 - 0.000066 Targets: SHORT (1) 0.000073 (2) 0.000091 (3) 0.000120 (4) 0.000141 MID (1) 0.000163 (2) 0.000199 (3) 0.000246 LONG (1) 0.000332 (2) 0.000520 (3) 0.000654 (4) 0.000825 (All time high) (5) 0.001317 (Just for fun) Stop-loss: 0.000040 Trade strategy: Pull out your initial coin purchase as soon as possible and then play catching up the next target with the profits. Note: Remember to diversify by dividing your capital into many different trades. By doing this, you will reduce risk as well as increase your chances of purchasing one of the many coins that will generate staggering profits in the soon coming Altcoins market bull run... In the meantime, let's enjoy the profits that we are already earning. Remember to sell small amounts of your holdings of each altcoin each time a target is reached. You can also aim for the big targets, but know that this will increase the risk. Another good strategy is to take out profit from a coin that has gone up already, and move it to a newly developing coin/trade. So if you bought a coin three weeks ago that generated 80% profits. You can sell a portion of your holdings and use these funds to purchase into a new trade. This way you diversify even more, extend your reach and increase your profits potential... Namaste.
SLong
by AlanSantana
88
SpreadCoin SPR\BTC Potential profit 340% long-term investmentSpreadCoin SPR\BTC Potential profit 340% long-term investment Buy 00003500-00005000 Stop-Loss 000002700 1. 4987 2. 7612 3. 10573 4. 13551 5. 15413 6. 18436 DESIGN SpreadCoin is a new cryptocurrency which is more decentralized than Bitcoin 3.56% -0.34% . It prevents centralization of hashing power in pools, which is one of the main concerns of Bitcoin 3.56% -0.34% security. SpreadCoin was fairly launched with no premine.
SLong
by NOSTRADAMUSXXIw