On the back of the military move on Qasem Soleimani, the market has had some early morning reverberations. A few that I noticed are oil stocks being higher, refining stocks lower, airlines lower, gold higher. But the most obvious of the list were the military defense names: Northrop Grumman (NOC), Lockheed Martin (LMT) and L3 Harris (LHX).
While the market is headstrong and the tech names continue to do the heavy lifting, these defense names have been under the radar. With the recent incidents of the Saudi oilfield attack, the US embassy in Iraq, notable ISIS leaders taken out and now one of the most prominent Iranian military leaders dead, the escalation is ramping up.
One other area is a little puzzling to me: I am surprised at how poorly the gold stocks are following on the huge move in gold prices this morning. I am publishing an article about Gold on the "Canadian Technician" page later today. Cross currents are starting to get bigger here! Please check it out!
Lastly, we have the StockCharts analysts discussing their 2020 market outlook tomorrow! It's a wonderful event that gives you multiple perspectives, including a live presentation by John Murphy! Those are very rare! Here is a link for those interested: 2020 Market Vision.
Greg Schnell, CMT, MFTA
Senior Technical Analyst, StockCharts.com
Author, Stock Charts For Dummies
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