Some Defense stocks look like they have put in long term big picture tops. THey could be ripe for multiple shorting opportunities for the patient - and the quick - over the next several months. ATK Weekly. Having a bounce on the daily chart, but if it closes below the .382 line its going to visit the .50 line
LLL weekly. Another big head and shoulders topping pattern. Bouncing now on the dailies but a move to 48 could be a good entry, or for the conservative, wait for the neckline to break around 40 .
LMT weekly chart. Two year ascent and turning over. Did a two year ascent and turned over in 1998 also.
LMT daily, close up view of prior chart. Like to see it bounce and then short on a daily reversal bar. Or a break of the trendline. Like the others, it is undergoing systematic distribution. I know what you may be thinking, Bush is about to start a war, and maybe he has others in the planning stage,and so these companies should see increased revenues, but the charts show they are being liquidated, in a what appears to be a long term cyclical fashion.
Is LMT a case of the charts leading the way, or the street sitting on the increased revenue potential because of general market unrest?