With tensions between the United States and North Korea at an all-time high, the U.S. stock market is starting to feel the heat.
President Trump warned North Korea that if it does not refrain from its repeated missile threats, the U.S. will respond with “fire and fury.” The one sector that has benefited from Trump’s sabre-rattling is defense contractors.
At the top of this list from a momentum-trading perspective is The Raytheon Company (RTN).
The Raytheon Company (RTN) is one of the largest aerospace and defense companies in the United States and features a diversified line of military products, including missiles, radars, sensors, surveillance and reconnaissance equipment, communication and information systems, naval systems, air traffic control systems and technical services. Its notable missile system includes the Tomahawk cruise missile and an advanced surface- or submarine-launched cruise missile with loitering and network communication capability.
The Raytheon Company (RTN) versus the S&P 500 year to date
Momentum Trader Alert Analysis
Recommendation
Buy The Raytheon Company (RTN) at market today and place your stop at $167.50.
With the stock’s volatility exploding in recent days, options have become too expensive to recommend this week.
Portfolio Update
Sell one half of your CBOE Holdings, Inc. (CBOE) September $90 call options at $6.30 for a 63.21% gain.
Sincerely,
Nicholas A. Vardy
