Defending The Fiscal Cliff

Thursday night Insurance Against the Fiscal Cliff pointed to a few insurance names that do not seem to care what is going on. Friday night saw 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 found 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)
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.

Disclaimer: 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.

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