Northrop Grumman Corp. (NOC) is a $16.82 billion dollar aerospace/defense company that is part of the industrial sector.
US Bancorp (USB) was one of the Twitter recommendations I made yesterday. It currently yields 2.4% and the monthly chart analysis looks very strong as it broke through major resistance, line d, in March.
What it Means: So far it has been a good week for stocks and a strong weekly close will further support my view that investors should Stuff Those Stockings with Stocks. Two of these stocks are in the financial sector with one health care and one industrial stock.
Though stocks could accelerate to the upside if a deal on the fiscal cliff is reached, I would not chase stocks and still look for slight pullbacks to buy. It is still important to keep your eye on the risk on any new purchases. In the December 7 update on the Charts in Play portfolio I raised some stops, and I am now adjusting them further, as well as updating for new positions.
How to Profit: For Unum Corp. (UNM), go 50% long at $21.12 and 50% long at $20.86, with a stop at $19.89 (risk of approx. 5.2% ).
For Life Technologies Corp. (LIFE), go 50% long at $51.04 and 50% long at $50.48, with a stop at $47.36 (risk of approx. 6.7% ).
For Northrop Grumman Corp. (NOC), go 50% long at $68.02 and 50% long at $67.52, with a stop at $65.48 (risk of approx. 3.3%).
From yesterday’s tweet: Buy US Bancorp (USB) at $31.94, with a stop at $30.83 (risk of approx 3.4%).
Buy McDonald’s Corp. (MCD) at $89.58 or better, with a stop at $87.22.
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