Industry Watch: Aerospace

December 23, 2009 in industry

This industry group is in rotation:

Other than BA, all 5 aerospace firms(excluding TIE) have been consistently beating earnings. Other than LMT, their charts seems to be agree.

All charts have shorter term MA higher than longer term MA, hence they are already in a confirmed uptrend. This is a sector/industry in rotation – money is flowing in.

Now only 1 thing is left - the market.

Nasdaq Composite is now at the level of supply which started right at the time when Lehman Brothers collapsed last year. Due to good earnings from major tech firms, the tech sector has been leading the market for the past week.

Well, there could be 2 possibilities: The current buying is a novice rally and will run out once the buying has stopped. It could also attract new wave of institutional buying and push Nasdaq to breakout from the supply level, leading everyone out of recession.

I have 2 plans ready to be executed if any of the outcome occurs.

Advertisement