Lockheed Martin (LMT) is flying high. Time to take profits and wait for the next sortie. (July 19, 2016)
LMT
Look, there’s really not volume in the S&P, in the market in general, it’s pretty low volume, a lot of stuff going on. Summertime is just sluggish and stocks can lift if there’s a buying bias, if there’s a bullish bias. And this is a TINA market, as they say, there is no alternative, so things just kind of float up. But ultimately you get a pullback. Now, Lockheed Martin ( NYSE:LMT ), you can see this volume, it just got kind of parabolic here; the F135, big killing machines that are REALLY fast and REALLY expensive. They’re looking for more orders there. What happened here? I don’t know the technical term for it, I just call it a long-legged doji, where there’s a real indecision. The stock opens at 259.00. It closes at 258.96, 4 penny different on a $250.00 stock. And in-between a big downdraft and reversal; big updraft and reversal.
So what is that telling us? It’s telling us the earnings report released is great, fine, fantastic. The stock is up a percent, sell it! That’s the deal, sell it! This is the kind of move that traders were waiting for. The interesting thing is, the stock didn’t gap up and then crap. It didn’t reverse, so that tells us that, yes, there’s is plenty of demand, certainly down here at 250.00. Of course there is demand for this here. And longer term you can see the uptrend works. And if you’re in a long-term position then don’t listen to what I’m saying, as far as, “Oh, sell it.” I’m talking about if you’re kind of a swing trader. Look, this goes up, sideways consolidation, it goes up big. At some point it’s going to either consolidate sideways or pullback a bit. I’m saying today was one of those super intraday volatility days. You can see what happened. This is the sign that an existing trend is going to end. So you take your profits on this. And if you want to get a longer-term position go ahead and buy the stock when it gets back to the 50-day moving average. But for now, for right now, I think you take your profits on Lockheed Martin ( NYSE:LMT ) and then look to reload when you get far enough away to use your missiles.
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