Hide Out

The attacks on Paris are actions of cowards.  Of course, thoughts and prayers are with the people of France and all those affected.  

Extremists are only getting smarter and technology is enabling them.  How do we fight this extremist ideology?  I don't have that answer.  We do know the intensity of the war against ISIS has turned up multiple notches.  Let's translate that to markets...

Many aerospace and defense stocks are at good and great buy points.  I'm surprised how clean and clear this is.  Some have actually been acting well for weeks now.  The broad market is very messy, but defense seems to be a group for large funds to hide out with potential catalysts.  Let's dig in to some of the cleaner trade ideas.

Lockheed Martin continues to make new highs and new lows.  It has pulled back into the rising 50 day moving average.  

Orbital ATK held up through the fall correction and broke a base on strong volume.  It has pulled back in an ABC correction into the pivot area and close to the rising 50 day moving average.

October's rally in General Dynamics has faded right into prior support and the 200 day moving average.

Aerojet Rocketdyne had a VERY high volume doji day Friday.

Looking at the weekly chart, we see this area has been a MAJOR support area for years and it coincides with a rising 200 week moving average test.  

Raytheon broke a 20 point base and it has consolidated in a tight range for a month in in this newly re-emerging uptrend.

Loral Space and Communications is testing an old multi-year base.  Downside momentum is exhausted.

On a related note, I'm watching the Tourism Index and Priceline to see where we head from here.  The recent ISIS attacks are already adding scrutiny to who we let cross our borders.  There's a chance regulations across the world over-react and restrict travel and trade.  

We haven't seen a legitimate rotation theme emerge in a while (I hear you 'FANG' peeps).  Is this going to be an intermediate term market theme?  Maybe, nobody knows.  It's just an excellent time to bet that it will be.

Trade 'em well!