Not likely. With POTUS trying to disembowel the military and the GOP front runners urging a ramp up what are the prospects for the Defense industry?.
Here's M11's objective spin on the largest defense ETF ...ITA ...and 10 of the largest defense contractors. This is a diverse group of defense providers and each has its own idiosyncrasies. Overall ITA has not done very well both short and longer term but a top #2 ranked sort based on momentum has performed appreciably better. The limit stops are all set to .7% which may or may not be reasonable given the tendency for jumpy prices in these issues. Nevertheless this study is intended as a jumping off point for further studies and, as always, we recommend using end of day M11 for opportunity studies and M3 real time for actually managing the positions with pre-close trade executions.
