The Best Offense is a Great Defense
- Posted by Greg Harmon
- on January 14th, 2014
You here this a lot this time of year related to the NFL playoffs. But it applies to the stock market as well and in many ways. Most often traders or advisers are referring to risk management. But right now as well Defense Stocks are looking great too. Here are 3 to consider.
Raytheon, $RTN, has been trending higher, like all defense names. It recently broke a bullish flag higher and carries a Measured Move to 94. That is close enough to also look for the 100 roll. With a rising Relative Strength Index (RSI) and a MACD about to cross up, this is a good time to get in. You can use Monday’s low as a stop. We have a long position from Monday.
Lockheed Martin, $LMT, is another good looking chart. It also has a rising RSI and MACD that support the upside and it broke over resistance Monday. Tuesday’s action retested that break, filling the gap, and held. Using 149 as a stop is reasonable.
General Dynamics, $GD, is third on the list. It is looking to break resistance higher at 95.60 and carries a Measured Move to 102.50 when it does. The RSI and MACD support the upside on this stock as well.
There are other names as well. So do not take this list as exclusive. Trade well!
Don’t forget to download A Longer Perspective, my take on 12 broad markets for 2014 and beyond, for the price of a latte.
Want to learn more about Dragonfly Capital Views?
Dragonfly Capital Views Performance Through December 2013 Expiry and sign up here for the free 7 day trial before you pay.
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)
- The next saga for KKR
- Top Trade Ideas for the Week July 6, 2015: Bonus Idea
- Top Trade Ideas for the Week of July 6, 2015: The Rest
- Top Trade Ideas for the Week of July 6, 2015: The Rest Premium
- Top Trade Ideas for the Week of July 6, 2015: The Best
- SPY Trends and Influencers July 4, 2015
- Macro Week in Review/Preview July 3, 2015
- How This Week’s Premium Top 10 Performed
- Two Paths in the Nasdaq 100
- Sailing higher with Nordic American Tanker