Call me crazy, but I’m still finding uptrends out there. People seem to be getting awfully bearish all of a sudden, and I get it, the market is off its highs, it’s started having reversals from gaps higher – always a bad sign – but there’s always an uptrend somewhere, and we have one in $LMT which we will enter at Thursday’s open.
There’s nothing to not like here. Smooth uptrend over the last 3 months, each rally phase on increased volume, including the most recent upswings as it resumes its uptrend and tries to reclaim those highs. I think a break of support at the $102.01-$101.35 level can act as a stop, and gives us a good risk-reward trade.
Looking at a chart for the last year we can see the bigger context. $LMT had been in a lengthy consolidation pattern, held in a $10 range for over 6 months, and has arguably only recently emerged from that by the same magnitude so it could still have legs here. The chart relative to the $SPY (below) also shows it well. It’s only recently started to shine after a lengthy period of underperformance.