June 30, 2022, 11:52 pm EDT
Defense, the Best Offense
Bears are in charge for the first half of 2022 that beat up the stock market for one of the worst performance Year-To-Date (YTD):
- Dow Jones: -15%
- S&P 500: -20%
- Nasdaq: -30%
It does not mean there is no weapon to fight with bears. In fact, we call “Defense, the Best Offense”.
When the major indexes are covered with red color (DJIA -253, S&P -33, Nasdaq -149), the defense industry rose up nicely:
AVAV +5%, ESLT +5%, NOC +4%, LMT +3%, LHX +2%, ARD, GD, LDOS +1%
Our portfolio holdings in NOC seem to get a bullish setup above all moving average lines (20,50,200) when most other stocks are near a 52-week low. The conflict in Russia-Ukraine quickly expands to two camps: Russia-China-Iran vs G7 (US, UK, Canada, Germany, France, Italy, Japan). Any triggering events could stir up international warfare. We need to pay attention to it.