Chart of the Day: This Holding Is in Need of Some Jet Fuel
It's odd that a name with practically zero competition, would be beaten down during a time when production is vibrant.
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If there is any stock out there that needs a refresh it would be Lockheed Martin LMT. Since peaking in the fall this TheStreet Pro Portfolio holding has suddenly become out of favor with big institutional buying.
It is quite odd to think a company like this, which has practically zero competition for its products, would be beaten down during a time when production is vibrant (from the last couple of earnings calls).
The chart is clearly bearish. The candles are purple or pink on the GoNoGo composite of indicators. We also see a downtrend channel drawn in here, a series of lower highs and lower lows.
Volume trends are bearish; we see several days of high volume on the down sessions. That says big institutions are net sellers.
So, are there any positives?
Perhaps, as MACD (moving average convergence/divergence) is turning up, but it certainly needs to keep this momentum going for a buy signal to confirm. Money flow at the bottom of the chart is also improving, a bullish trend channel established of higher highs, higher lows. But there's plenty of resistance at the long-term moving averages. A sideways basing pattern for a month or two would be a positive development, and maybe a good spot to add shares.
We like Lockheed Martin and rate it a one in TheStreet Pro Portfolio, or "buy at anytime."
At the time of publication, TheStreet Pro Portfolio was long LMT.
