Defending the Fiscal Cliff
- Posted by Greg Harmon
- on November 29th, 2012
Now until December 2nd, the Annual Membership can be had at a Special Fibonacci Discount to the Rolling Monthly Rate. 38.2% off or $667.44. Follow the link here.
Last night Insurance Against the Fiscal Cliff pointed to a few insurance names that do not seem to care what is going on. Tonight sees three defense stocks, the ones that will get clobbered by sequestration cuts, also rising defiantly at the edge of the cliff. Perhaps it is because they know how to fly and can see what is on the radar?
Lockheed Martin, $LMT
Lockheed Martin, $LMT, briefly pulled back to the 200 day Simple Moving Average (SMA) after the election, but is now right back at the highs. The chart reminds of a plane taking off an aircraft carrier, slight dip on leaving the ship and then into the wild blue yonder. A move over 93.80 sets it up for a Measured Move higher to 101.40 and it has support from a rising and bullish Relative Strength Index (RSI) and a positive and growing Moving Average Convergence Divergence indicator (MACD).
Northrup Grumman, $NOC
Northrup Grumman, $NOC, is similar but not at that breakout level yet. Moving into the 50 SMA on the way to the current Measured Move at 68.20, it support higher from a RSI trending higher and on the verge of turning bullish and a positive MACD. Resistance comes next at 69 and 70.60 over the Measured Move.
Raytheon, $RTN, is the wild card. Moving sideways in the blue box since mid June it has been range bound. But the shorter view, for a trade, shows that price moving up over the 50/100 SMA confluence with a rising trend RSI and a MACD that is positive and growing. As it reaches the top of the box the longer view comes into the radar. Over 58.20 triggers a target of 62.90 first.
If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
- Top Trade Ideas for the Week of April 20, 2015: The Best
- SPY Trends and Influencers April 18, 2015
- Macro Week in Review/Preview April 17, 2015
- Dragonfly Capital Views Performance through April 2015 Expiry
- Unlocked: Premium Earnings Trades for Morgan Stanley and Hasbro
- Premium Earnings 4-17-15
- Revisiting the oil to bond ratio (spoiler: its not too late)
- Unlocked: Schlumberger and General Electric Earnings Trades
- Release the brakes & hit the gas in Wabtec
- Premium Earnings 4-16-15