Wargaming or Not

Shares of Lockheed Martin are dropping today after President-elect Trump said the F-35 program was too expensive. Other aerospace and defense plays are down, too, like NOC and RTN. 

On its face, the case certainly seems to be that the market is becoming sensitive to Trump's comments. However, it is worth noting that the aerospace and defense plays have virtually all enjoyed steep, multi-year rallies. Given the recent theme in the market of value outperforming some of the bull market winners, a rotation out of the group would not surprise me, going forward. 

And doing so under the cover of Trump makes sense. Case in point: NOC's monthly chart, below, has arguably been ripe for some type of correction long before Trump even announced his candidacy for President. 

More in my usual Midday Video for Members.