Lockheed Martin $LMT#LockheedMartin is just above 50SMA and holds on fib 0.618. However, the last 3 candles look slippery
Aerospace
Virgin Galactic $SPCEAfter long rally, Virgin Galactic fallen back and holds above weekly 50SMA but couldn't close above last week's candle. Daily looks still bearish so first needs to get over $15.96
Axon Enterprise $AAXN#AxonEnterprise broke out the down trend and daily 50SMA but the volume is low.
Fly Leasing at a LowSimilar to most airlines stocks Fly Leasing is trading at all time lows. The part of interest that attracts me to FLY is their business model and market. They are well positioned to take advantage of their cash flow and low operations cost of leasing aircraft instead of operating them.
Aerospace Contractors Aerovironment is an aerospace contractor that provides technology and software to the governments various branches of the military for research and development of advanced aerospace technology. The stock is trading at a major low and is forming a double bottom near the low of the stocks price range.
Aerovironment LowAVAV is currently trading at a major low range and their earnings is expected to be announced later at the end of the trading day today. With the stock up alrady 2% during the day there may be some strong optimism around the stock for the earnings report.
XAR Aerospace & Defense ETFIV is low
Debits are a good option
because it's an ETF, ER becomes less important.
Seasonally strong right now but beware the bloomberg pump as I mention briefly in the video
GL HF
xoxo
snoop
Worsening fundamentals in Boeing may lead to a break of supportBoeing trades at an extremely high P/E multiple of 50, and the forward P/E is even worse at 455. Investors have been hanging on at the current support level on hope of a turnaround in the earnings forecasts, but instead the forecasts are continuing to fall. The latest round of analyst forecasts cut Boeing's expected earnings by about 12% for 2020 and about 13% for 2021. Given this earnings outlook, Boeing's 2.5% dividend payout is not sustainable and is at risk of getting cut.
The headlines are bad for Boeing , too. Today Boeing got put on watch for a credit downgrade, and one of its suppliers got cut to junk. Also announced today, the city of Seattle is considering another tax on mega-corporations operating in the city, including Boeing , which has a factory there. Boeing has some volume support down to around the $320 per share price level; then look out below.
(Recently I reported in one of my posts that Boeing had gotten a big earnings forecast raise on January 2. That spike soon disappeared from their forecast chart, and upon calling Zacks I learned that it had been a database glitch. Apologies to anyone here who traded Boeing based on that information.)
Boeing and Lockheed just got a big earnings forecast upgradeFor assessing earnings forecasts, I use the Zacks "Price and Consensus" chart. The charts for Boeing, Lockheed-Martin, and Raytheon all show that they got big upgrades of their earnings forecasts last not. I should caution that I have no idea WHY analysts upgraded these aerospace companies' earnings. Maybe it's related to the Trump space force or geopolitical tensions with Iran. But the stocks are moving today in response to the upgrade, and the upgrade was biggest for Boeing. An ETF like DFEN, with a lot of Boeing exposure, looks like a promising bet after the upgrade. Aerospace stocks have been pretty overvalued overall, so until I understand better why the upgrade happened, I am treating this as a short-term swing trade.
MAXRA conservative entry on the break of the high. Target levels indicated on the chart. Maxr will be a big player in the space sector so looking for a solid change of trend and a break of this current year long range into higher levels.
Ultra Electronics - Attack the best form of defence?Buy Ultra Electronics (ULE.L)
Ultra Electronics Holdings plc provides solutions and products in the defense and aerospace, security and cyber, transport and energy markets, by applying electronic and software technologies. The Company operates in three segments: Aerospace & Infrastructure, Communications & Security, and Maritime & Land. Its market facing segments are Aerospace, Infrastructure, Nuclear, Communications, C2ISR, Maritime, Land and Underwater Warfare.
Market Cap: £4.79Billion
The medium-term trend is bullish on Ultra Electronics. The shares have consolidated in recent weeks, forming an ending wedge pattern on the daily chart. The break above the upper boundary of the wedge is a bullish signal. We expect to see further upside over the coming weeks and months with a move towards new highs.
Stop: 1830p
Target 1: 2290p
Target 2: 2350p
Target 3: 2500p
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Join our free Telegram channel for up to date analysis on the best main market opportunities in the UK right now - t.me
Heico Corp - Fibonacci retracement analysisHEI has been on a steady uptrend since late May 2019.
On September 9th, It dropped 20%+ aggressively in 3 days. To land on the 61.8% fibonacci retracement line. (Pullback?)
It is currently breaking the 50% level with above average volume. (Bull!)
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* Be careful with the FOMC meeting in 24 hours. (Wednesday September 18th at 2pm EDT). It will most likely move the markets.
AUS Vanadium - High Strength Steel InvestingVanadium oxide/pentoxide is used to harden steel to make high strength steel for concrete reinforcement, automobiles (thinner gauge/light weighting), and aerospace engines, and things like submarines. ASX:AVL UUUU
This is micro/small cap mining stock that specializes in vanadium pentoxide, which for HSS used near 15-18% with iron and reduces corrosion as well.
V2O5 is not mined effeciently by many and China will need for infrastructure. It showed the climb last year and dipping at 618fibretracement entry. wait for it.
Can't see correction below 0.618, Fib min-max values.
RADA on Radar within #Defense & AeroRADA looks to be forming cup and handle pattern on daily chart. Looks to have already completed 1st and second wave in uptrend (2 of 5), which also filled a previous gap.
This stock seems to be flying under the radar ; )
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Disclosure: I do not own RADA. I may buy/ sell within the next 72 hours. This is NOT a note to buy or sell. Please do your homework before investing.
$XAR - Clear for TakeoffOne area investors and traders should take a look at is the Aerospace and Defense industry ($XAR as proxy), which is currently the best performing industry year-to-date (as of July 5th), generating 28.59%.
On a technical basis, $XAR is trading above all three EMAs, indicating strong price action at the moment. Further, its RSI as been steadily trending higher since the end of June, indicating strong market sentiment in this industry. Further, on a global macro basis, the industry has been helped by a rise in geopolitical tensions around the globe, with the most recent being tensions in the Middle East between Iran and Western powers.
If this trend continues, $XAR could hit $107.81 in a few weeks.
Kratos | Bullish correctionKTOS has had a huge run lately and sometimes its good to ring the register. To watch for future defense contracts for Kratos, check out this site.
Technicals:
Pattern suggests KTOS has ran its 5-wave sequence.
Rising wedge suggests a pullback incoming
upside potential $26. watch for sharp selloff if this is the case.
on a pullback, support levels I will be watching are $22->$20->then $18 (look at chart for measured levels to the cent)
Fibonacci extension usually extends between 1.27 -- 1.414 from lows. We are there NOW.
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Tip # 4: Wait for patterns to come to you. Be patient, you cant move market on your own.
-Volatility Watch
Disclosure : I do not own a position in KTOS. This is not a recommendation to buy or sell. Please do your homework before investing
WESCO AIRCRAFT HOLDING INC - NYSE: $WAIR Continues To FlagAfter breaking-out last month (May) on nearly 8X its average daily volume and in the process reclaiming its 200 DMA, shares of WESCO AIRCRAFT HOLDINGS INC - NYSE:WAIR continue to digest the recent run in and orderly manner as well as continuing in a Flag pattern as evidenced in the Daily chart above.
In addition, WAIR now finds itself trading above all of its important moving averages 20/50/200 DMA's, which portrays a healthy technical picture.
While we continue to await the resolution of the Flag pattern, the stock continues to display constructive characteristics, whereby both investors/traders may want to continue to monitor the action closely in the days/weeks ahead.
Finally, with the recent merger announcement of United Technologies Corporation NYSE:UTX and Raytheon Company NYSE:RTN , we can't help wonder if this may precipitate further M&A within the Defense/Aerospace industries moving forward down the road?
Short at $400short the dead cat bounce. the $450 short from $300 christmas low was also easy money.
look for this to print a collapse chart similar to facebook after its $220 parabolic bubble blowoff
Long @ 6.50 target $12.25NICE setup for counter market movement, if 2019 is a flat/ topping year
IPO price is $25 range, consider that the long term target
