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.
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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)
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