Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Two Ways: Lockheed Locked Out By Senate


Strengthen your portfolio in good times and bad.

Shares of Lockheed Martin (LMT) took a beating after the Senate rejected additional funding to expand the F-22 fighter jet program.

The 58-40 vote passed today now cuts $1.75 billion from the fiscal 2010 budget which was originally earmarked for 7 additional F-22 fighter jets.

President Obama had pressured Congress to make the move. According to the New York Times, he vowed to veto the entire defense budget if it had included any funding for the F-22 fighter jet program. In his daily press conference, President Obama said, "At a time when we're fighting two wars and facing a serious deficit, expanding the F-22 would have been an inexcusable waste of money."

Lockheed CFO Bruce Tanner told analysts that the company had received "a full hearing" from Defense Secretary Robert Gates and would accept the decision.

Shares tanked 8.5% to $75.13.

From the Bull Pen: If you think the fears in LMT are overdone, short term traders might want to consider a put selling strategy. But know thy risk. If assigned, you'll have to purchase the shares. As far as defense plays, General Dynamics (GD) could be another upside opportunity. See the daily chart below for a potential inverse head and shoulders pattern.


Click here to enlarge.

From the Bear Cave: On the other hand, Lockheed's chart is technically broken, and the stock could have room to the mid 60's should the other support lines not hold. Those playing this should set a 2% buy stop above entry.


Click here to enlarge.

See you on the hump! Good night!
< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos