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General Dynamics  (GD - Get Report) , Lockheed Martin  (LMT - Get Report) and Northrop Grumman  (NOC) had positive reactions to earnings last week, but they drifted lower after trading higher. This weakness is a buying opportunity as President Trump wants to increase U.S. military spending. Take a core long position at the market today, then add to positions on weakness as I describe.

According to the Stockholm International Peace Research Institute, U.S. military spending has risen for the first time in seven years. SIPRI pegs global military spending at $1.8 trillion last year, the highest since 1988. This is a significant reason to own these stocks.

General Dynamics opened at $178 on Monday and has a gain of 13.2% year to date. It's in bull market territory 23.7% above its Dec. 26 low of $143.87. Its earnings beat on April 24 extended its winning streak to seven consecutive quarters. The stock is reasonably priced with a P/E ratio of 15.75 and dividend yield of 2.29%, according to Macrotrends.

Lockheed Martin opened at $328.40 and has a gain of 25.4% year to date. It too is is bull market territory 36.2% above its Dec. 26 low of $241.18. Its earnings beat on April 23 follows a quarter of matching expectations. The stock is reasonably priced with a P/E ratio of 16.56 and dividend yield of 2.68%, according to Macrotrends.

Northrop Grumman opened at $283.59 and has a gain of 15.8% year to date. It has risen 26.8% above its Dec. 26 low of $233.61. Its earnings beat on April 24 extended its winning streak to 16 consecutive quarters. The stock is reasonably priced with a P/E ratio of 13.84 and dividend yield of 1.70%, according to Macrotrends.

The Daily Chart for General Dynamics

Courtesy of Refinitiv XENITH

The daily chart for General Dynamics shows that the stock spiked higher on April 24 staying below its quarterly and annual risky levels at $193.90 and $194.98, respectively. The pullback has the stock between its 200-day and 50-day simple moving averages at $171.31 and $180.21, respectively, which is a buy zone for the stock. The bull market rally began with a "key reversal" on Dec. 26 where the close of $152.17 was above the high of $149.68 of Dec. 24 after the Dec. 26 low of $143.87. The semiannual risky level is at $215.70.

The Weekly Chart for General Dynamics

Courtesy of Refinitiv XENITH

The weekly chart for General Dynamics is neutral with the stock above its five-week modified moving average of $174.18 and above its 200-week simple moving average or "reversion to the mean" at $175, where the stock is a buy. The 12x3x3 weekly slow stochastic reading is projected to end this week at 72.52 down from 75.72 on April 26.

Trading Strategy: Buy weakness to the 200-week simple moving average at $175.00 and reduce holdings on strength to the semiannual risky level at $215.70. Traders can reduce holdings at the quarterly and annual pivots at $193.90 and $194.98, respectively.

The Daily Chart for Lockheed Martin

Courtesy of Refinitiv XENITH

The daily chart for Lockheed Martin is close to confirming a "golden cross" as its 50-day simple moving average at $305.82 is just below the 200-day simple moving average at $307.25. When the 50-day rises above the 200-day a "golden cross" will be confirmed and higher prices will likely follow. Note how the spike high on earnings released on April 23 was a failed test of its annual risky level at $335.92. Above are quarterly and semiannual risky levels at $343.61 and $359.40, respectively.

The Weekly Chart for Lockheed Martin

Courtesy of Refinitiv XENITH

The weekly chart for Lockheed Martin is positive but overbought with the stock above its five-week modified moving average of $312.52 and above its 200-week SMA or "reversion to the mean" at $274.86 which held as 2019 began. The 12x3x3 weekly slow stochastic reading is projected to rise to 86.21 this week up from 85.81 on April 26 with both readings well above the overbought threshold of 80.00.

Trading Strategy: Buy this stock on weakness to its 200-day simple moving average at $307.25 and reduce holdings on strength to my annual, quarterly and semiannual risky levels at $335.92, $343.61 and $359.40, respectively.

The Daily Chart for Northrop Grumman

Courtesy of Refinitiv XENITH

The daily chart for Northrop Grumman has been holding its 200-day and 50-day simple moving averages at $283.20 and $278.29, respectively. The stock spiked higher on April 23 but stayed shy of its annual risky level at $298.16. Above are quarterly and semiannual risky levels at $342.08 and $352.16, respectively.

The Weekly Chart for Northrop Grumman

Courtesy of Refinitiv XENITH

The weekly chart for Northrop Grumman is positive with the stock above its five-week modified moving average of $270.63 and above its 200-week SMA or "reversion to the mean" at $252.70 which was crossed as a buying opportunity as 2019 began. The 12x3x3 weekly slow stochastic reading is starting to rise this week at 65.19 up from 65.05 on April 26.

Trading Strategy: Buy weakness to the 200-day and 50-day SMAs at $283.30 and $278.29, respectively, and reduce holdings on strength to my annual, quarterly and risky levels are $298.16, $342.08 and $352.16, respectively.

Disclosure: The author has no positions in any stocks mentioned and no plans to initiate any positions within the next 72 hours.