LONG-TERM RELATIVE RATIO CHARTS – Industrial SECTOR
Beginning with this post I began showing the relative ratios of all US equity industries vs. the SPX across their entire history. Posts will be grouped by sector, and each sector post will show all the relative sub-industries within it. I’ve generally tried to only…
Additional Evidence Suggesting a Historic Top in Place for Defense Stocks
In March I began making the case that defense stocks were in the process of putting an important top in place, which you can read about here. However, at that time I don’t think I fully appreciated the exact nature…...
Revisiting the Defense Industry as the First-Ever Audit of the DoD Commences
All the way back in this Oct-12 post I highlighted the defense industry and a few of its individual components, noting what I thought were theire overall bullish positioning vs. the broader market after a decent stretch of under-performance. Below I…...
Might This Stock Double or Triple in as Little as 6 Months?
CUB is sitting on channel support line (1). Also caught in a flag pattern formed by that line and the blue line. Last two times it’s been at channel support and has formed a flag pattern (A and B) and…...
Political Winds About to Add New Tailwinds to our Favorite Defense Stock?
Our last post on TASR was on November 6th, right here. In that post when the stock stood at its current levels, we said the following: Given the technical set-up…we remain bullish the name but would look to preserve gains…...
Defense Out-Performance Thesis Yielding More Fruit Post-Election
Like TASR, SWHC was one of the names highlighted in our original defense industry out-performance thesis. We didn’t single it out as a focus name like TASR as it had already had a monster run and was approaching long-term resistance…...
TASR Up 20% in Three Weeks as Defense Industry Out-Performance Thesis Bears Fruit
On October 2nd we noted in a post that companies in the defense industry were likely to out-perform the broader market moving forward. In that post we stated the following: “…we would anticipate that defense stocks could out-perform for some…
Defense Industry Ready to Out-Perform?
The chart below plots the ratio of the DJ Defense Index vs. the SPX. From its 2009 highs to its recent lows the ratio declined by ~40% as defense companies have under-performed the broader market materially. The decline in the…