Defense Sector Overview
A quick trip around the defense sector and its pretty easy to see that the major defense contractors like $LMT, $NOC, $GD, and $RTN have hit some turbulence over the past 4-6 months. Lots of double tops have executed and most of these names now find themselves under their declining 200dma's and with substantial over head resistance.
Here is a daily chart of $DJUSDN, the Defense Industry group.
It serves as a good snapshot of what is happening. Price below the 200 with downtrend resistance and overhead resistance above. Sure the momentum and RSI have turned up with the recent bounce, but I believe the overhead resistance right here , right now will prove to be too much to overcome. Certainly a tough place to take a shot on the long side in my opinion.
General Dynamics - A clean look at an objective short
The same general picture holds for $GD as mentioned above, but here, at least to my eye, is a clean look at an objective short with a stop near by.
Here's what I see:
That's what makes markets. I'd love to hear your thoughts
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Annotated Daily Chart of $GD HERE