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Boeing may have outfoxed Musk, but it could have bigger problems

Elon Musk is arguably one of the greatest entrepreneurial minds of the 21 stCentury, but he may have just gotten beat by an old school aerospace giant.

According to published reports, Boeing may be the company winning NASA's contract for a space taxi. One of the other companies vying for the deal is SpaceX, the company headed by Tesla's Musk.

Should Boeing win, it would get the right to build capsules that will take astronauts to and from space. Currently, the NASA contract depends on Russia, which charges about $70 million per person.

Boeing is the worst-performing Dow stock on a year-to-date basis; while the overall index is up 3 percent, Boeing is down 7 percent. That's even while its net income of $5 billion over the last four quarters is 19 percent higher than it was a year ago.

Would this potential deal make a difference for Boeing and make the stock a buy? Gina Sanchez, founder of Chantico Global, doesn't believe so.

"It takes a long time to build aircraft," said Sanchez, a CNBC contributor. "From the time you get orders to the time you deliver, a whole lot of things happen. It takes years."

While she finds it interesting that Boeing could be able to outdo a nimble start-up like SpaceX, Sanchez would not yet rush to buy the stock. "This is the kind of thing you wait over probably a year to see how this pans out," she said.

However, Richard Ross, global technical strategist at Auerbach Grayson, thinks the technicals already have made a decision clearer.

"I think the stock is a sell," said Ross, a "Talking Numbers" contributor. With Boeing shares up nearly 82 percent in 2013, it's "not a surprise then that we're the worst-performing Dow stock this year even in a strong tape."

Boeing's 200-day moving average has become resistance after the stock broke below it in late June, Rosssaid. He sees a bearish late-summer double top, which peaked near the average at around $129, as confirming the 200-day moving average's role as resistance. Now it may be all downhill.

"I think you get a test of that very well-defined support down around $120," Ross said. "From there, you could see a break below that level. That would be a more dramatic sell signal. In the short term, you want to avoid this stock. On any break below $120, you want to be a better seller."

To see the full discussion on Boeing, with Sanchez on the fundamentals and Ross on the technicals, watch the above video.

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