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Northrop Grumman Corp. (NOC) is a $16.82 billion dollar aerospace/defense company that is part of the industrial sector.

• The correction from the October 2012 high at $71.25 just violated the 50% Fibonacci support at $64 as it made a low of $62.80.
• There is resistance from 2011 at $72.50 and then at $85.21, which was the late 2007 high.
• The daily relative performance made new highs in October and has just moved back above its WMA.
• The RS line has good support at line b
• The daily OBV moved through its resistance last week, pulled back to the breakout level before turning higher Tuesday.
• There is initial support at $66.56, which is the quarterly pivot with stronger at $64.80-$65.50.

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.

• The monthly trading range (lined d and e) has upside targets in the $38-$40 area.
• The monthly starc+ band is at $38.90.
• The monthly relative performance confirmed the March breakout and has now pulled back to its WMA.
• The monthly OBV has held very strong on the recent pullback as it is very close to its all-time highs and well above its uptrend, line g.
• There is minor support now at $31.80 and then further in the $30.90-$31.30 area.

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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