11Feb10:49 amEST

Aerospace and Defense: Time to Come Back Down to Earth

Many aerospace and defense stocks have seemingly defied the market selling in 2016. Beyond that, they have largely enjoyed steep, multi-year uptrends. 

Today, however, the likes of Boeing are getting sold hard, in addition to mainstays like GD LMT RTN. 

I also view a chart like NOC, below on the daily timeframe, as being an actionable short idea, despite looking at the technicals here in a vacuum indicates it is a relative strength name. Note the potential head and shoulders top shaping up, with a move below $178 again likely setting in motion a fresh leg down. 

While NOC has been holding up well, the long-term technicals also indicate the stocks is priced for near-perfective short-term. Moreover, at least eight out of ten stocks are eventually going to get hit in a broad market bear trend, if not more. 

As a result, I view the entire sector now as quickly becoming actionable on the short side. 

It is time for them to come back down to Earth. 

Put Down the IPA and Check O... Mind-Altering Drugs and Mark...

 
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