The chart from my last post is the weekly timeframe of aerospace/defense firm, Northrop Grumman Corporation (NOC).
A big tip of the hat and congratulations to @StockCats who immediately nailed the answer. Thank you to all who guessed.
With respect to virtually all of the major aerospace/defense stocks, namely BA LMT, we have seen some terrific runs from the group over the past few quarters. While the momentum leaders like Facebook and Tesla understandably have received most of the attention for their magnificent (if not now-absurd) uptrends, the aerospace/defense firms have rather quietly been paying investors a nice dividend all the while sustaining impressive momentum higher.
However, regarding putting fresh capital to work here on the long side, I maintain the risk-to-reward with respect to these stocks remains poor, and am more interested in looking at them for a tactical short. The rally in 2013 for the group may very well prove to be the initial leg higher in a new bull market for them. But I expect a much better entry point in the coming months.
As a long-term investor in Boeing (I first discussed the idea back in December 2012 here), it has been a particularly strong test of patience, given that stock’s endless push higher, in terms of trading around core shares while waiting for a better spot to add back.
Nonetheless, NOC and company are looking at a likely government shutdown. My sense is that the market will use this as an excuse, rather than a catalyst, to lock in gains in the sector, given the very extended nature of the charts heretofore.
____________________________________________________________
Love your taste in film! http://www.youtube.com/watch?v=aIxPcJIUb-Q
A great film. Thank you, brother.