Defense stocks have been on a tear lately and they are on their second breakout. After the first one this sector consolidated for a few days and then ripped higher with strong follow through action. I included Northrup Grumman (NYSE:NOC) below, but there are a few stocks in this sector that are behaving bullishly, and while they’re overbought at the moment, they should be watched after a pullback to their 20 or 50ema.
On a side note, even though the markets recovered from a shaky start yesterday, my portfolio was slightly down. In the past when the markets are rising and my stocks are stagnant to down it’s a sign of a short term top in the markets. Click on all charts to enlarge.