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Defense Stocks Survive Sequester Cuts

Northrop Grumman (NOC - Get Report) ($80.86) set a multi-year high at $83.28 on May 17. The weekly chart is positive but overbought with the five-week MMA at $76.09. My semiannual value level is $76.63 on this hold rated aerospace stock with a weekly risky level at $82.66.

After I graduated from Georgia Tech in 1966, I worked at Grumman when the company was the largest employer on Long Island. As a "Grummanite" I was proud to have helped put man on the moon in 1969, and was thrilled when Grumman won the contract to design and build the F-14 Tom Cat.

Raytheon (RTN) ($66.24) set a new multi-year high at $67.44 on Wednesday. The weekly chart is positive but overbought with the five-week MMA at $62.36. My annual value level is $64.74 with an annual risky level at $69.36.

United Technologies (UTX) ($96.25) set a new multi-year high at $98.18 on Wednesday. The weekly chart is positive but overbought with the five-week MMA at $94.42. My semiannual value level is $94.43 with no risky levels. United Technologies is in the multi-sector conglomerate sector, but it must be included today for its Pratt & Whitney jet engines and for its Sikorsky Helicopters which include the Black Hawk.

At the time of publication the author held no positions in any of the stocks mentioned.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

Richard Suttmeier has an engineering degree from Georgia Tech and a master of science from Brooklyn Poly. He began his career in the financial services industry in 1972 trading U.S. Treasury securities in the primary dealer community. In 1981 he formed the Government Bond Department at LF Rothschild and helped establish that firm as a primary dealer in 1986. Richard began writing market research in 1984 and held positions as market strategist at firms such as Smith Barney, William R Hough, Joseph Stevens, and Rightside Advisors. He joined in 2008 producing newsletters covering the U.S. capital markets, and a universe of more than 7,000 stocks. Richard employs a "buy and trade" investment strategy and can be reached at
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BA $149.60 -1.56%
COL $95.03 -2.17%
GD $131.27 -1.41%
LMT $194.82 -1.17%
NOC $160.16 -1.97%


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S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

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