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.