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Boeing Needs to Head Lower: Murphy

Thursday, 17 Jan 2013 | 12:57 PM ET
Boeing Stock Needs to Go Lower: Murphy
Problems with the Boeing Dreamliner means now is not the time to buy the aerospace company's name, Rosecliff Capital's Mike Murphy says.

Problems with the Boeing 787 Dreamliner means now is not the time to buy the aerospace company's stock, Rosecliff Capital's Mike Murphy said Thursday.

"I do not think now is the time to get in on Boeing," he said.

"If you look at the way the stock traded this morning on news that their entire fleet of Dreamliners was being grounded, it came down almost picture-perfect, down to the $72.60, $72.80 range, which is the 100- and 200-day moving averages, hit that level and bounced right up to where a few seconds ago it was positive."

The Federal Aviation Administration indefinitely grounded the new 787 Dreamliners due to problems with the airliners' batteries.

On CNBC's "Fast Money," Murphy saw the issue as more than simple teething pains.

(Read More: 787 Design Flaw Could Be Serious Trouble for Boeing: Aviation Expert)

"I would not jump in on Boeing here, and the reason is, this problem is not going to go away anytime soon," he said.

"This is not something that's going to be going away tomorrow or the next day. This is a much bigger problem for Boeing, in my opinion. I need to see it a lot lower."

Trader disclosure: On Jan. 17, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Jon Najarian is long GS CALLS SPREADS; Jon Najarian is long INTC CALLS; Jon Najarian is long EBAY CALLS; Jon Najarian is long NFLX PUTS; Jon Najarian is long AMRN CALLS; Joe Terranova is long VRTS; Joe Terranova is long AAPL; Joe Terranova is long GS; Joe Terranova is long MS; Joe Terranova is long MMM; Joe Terranova is long GLW; Joe Terranova is long DELL; Joe Terranova is long SWN; Joe Terranova is long XOM; Joe Terranova is long KRE; Joe Terranova is long DELL FEB 13 CALLS; Stephanie link is long AAPL; Stephanie link is long GS; Stephanie link is long WFC; Stephanie link is long BRCM; Simon Baker is funds long AAPL; Simon Baker is funds long CELG; Simon Baker is funds long XLY; Simon Baker is funds long GS; Simon Baker is funds long GOOG; Simon Baker is funds long XLU; Simon Baker is funds long AMRN; Simon Baker is funds long WFC

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