Time to go on offense in the defense stocks. (August 20, 2014)
I want to look at Lockheed Martin ( NYSE:LMT ) here because it’s just kind of rambling down the runway I guess for most of the year, and just starting to breakout now. I don’t think it’s too late to buy it; it’s up almost 2 percent today. Look at the weekly chart, it shows nice moves, don’t they make rocket ships? Sideways consolidation, this is just getting going, I think you can buy Lockheed ( NYSE:LMT ) here. It’s pushing away from the 50-day moving average, also the 150 and the 200, but it’s not so far away that you’re going like, “Oh my gosh, this is over bought.” Then I’m wondering did somebody just decide they wanted to buy Lockheed Martin ( NYSE:LMT ) to create some supply and then they’re going to dump it back on the market, or is this kind of a sector thing.
Well then we look at Raytheon ( NYSE:RTN ) up at prior resistance but this is starting to look a little frisky too. How about Northrop Grumman ( NYSE:NOC ) up at prior resistance, I don’t know whether this is going to blow through or not, but when I see Northrop Grumman ( NYSE:NOC ) and Raytheon ( NYSE:RTN ) doing the same thing that Lockheed Martin ( NYSE:LMT ) is doing, then do you know what I do? I look at Honeywell ( NYSE:HON ) and Honeywell ( NYSE:HON ) is also up today, still chopping around, still below this level, and then I look at L-3 ( NYSE:LLL ), I don’t want any part of that, thank you very much, not so much.
Look at B/E Aerospace ( NASDAQ:BEAV ), not so much, but this is up too. So all of these are up today. Look at United Technologies ( NYSE:UTX ), even that’s up. A couple weeks ago this was the redheaded stepchild of just about anybody who was talking about stocks. Stay away from United Tech ( NYSE:UTX ), oh my gosh it’s diving down, it looks like a lawn dart, well not so much. So all of this is working and that takes me back to this, Lockheed Martin ( NYSE:LMT ). To me this is the best one because it’s in blue sky. I like it, I think you should too, and you’re probably going to make some money on it.
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