With upcoming earning coming up for $GD defense stocks will skyrocket. The Ukrainian president has announced today that he is calling off the ceasefire and requesting more aid. The huge game changer for the defense sector is once earnings are reported they will provide guidance on how much money they are being allocated for these contracts. Historically defense stocks outperform the market in times of conflict. For example if you look at PPA’s moving 3 month average it vastly outperforms the S&P index. After most earnings for defense stocks come out by end of May you will see a huge rise in speculative pricing once these guidance are given.
Positions are here ! All of my positions correlate after earnings so you have an idea of the strike to look at. This will honestly only fail if the Ukraine has peace by early May which is highly unlikely as global spending on defense has never been higher in the past 10 years.
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