A look at aerospace and defense stocks. (May 15, 2014)
Discussed in this article: Boeing Co. ( $BA )
I want to look at the aerospace and defense stocks today, because I like this group, I’ve liked them for a while, I still like them, and so let’s see if we can find some levels here.
Okay Boeing ( NYSE:BA ), Dow component, so the Dow’s down a lot you’re going to see Boeing down. So we look at Boeing ( NYSE:BA ), do we want to buy Boeing ( NYSE:BA )? Sure, why not, this is a holding stock it’s not a trading stock. If it falls down, you know it would be great to get it about at $126.00 or so; the fact that it’s only down 1.5 percent is actually kind of a good thing. Look at where support is, support is just kind of right along this trendline, it could fall another $4.00 or $5.00, and give you the better entry, but what I’m saying is, this is okay to buy now. Spirit AeroSystems ( NYSE:SPR ), no, not, this is essentially like it a little bit of a double top; if the thing falls say 10 percent maybe, but where’s the trend here, there really isn’t a trend, so this is not really one that you want to be involved in.
Now how about Honeywell ( NYSE:HON )? Honeywell’s ( NYSE:HON ) in sideways consolidation, this is another quote “holding stock”, it hasn’t really been doing anything. This the kind of stock that you just have in your long-term portfolio, it kind of bores you to death, in three, four, five, six, seven months, it’s up above $100.00, you didn’t hardly even know it and you made 10 percent on your stock in less than a year in a long-term holding. That’s the kind of trade Honeywell ( NYSE:HON ) is, there’s nothing sexy about it. United Technologies ( NYSE:UTX ), same deal here, it’s a long-term hold, I’ve been talking lately about these long-term holding stocks more and more because it’s just really important, it’s really important to have those, otherwise you’re going to get zigzagged out on every single market move. And then finally Northrop Grumman ( NYSE:NOC ), same deal, a little bit of a volatility squeeze.
I really think these stocks have more work to do, and if, this is if, not when, if they start breaking out, say above the upper Bollinger Band, I think these can run a bit, I think they can run. But wait for them, because what I don’t want to have happen is, you listen to me and think Dan is pounding the table on these things, no stops needed, he says they’re going to go higher, and then Northrop Grumman ( NYSE:NOC ) falls below the 200-day moving average; Honeywell ( NYSE:HON ) implodes below the 200-day moving average, United Technologies ( NYSE:UTX ), same deal. The bottom line is, make sure you have stops in place and you trade with control.