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Ahead of tomorrow morning’s Q1 earnings report shares of Northrup Grumman are moving well.  The stock is up over 3% and is moving past layers of heavy resistance.  Other big defense names are also rallying of late.  Lockheed Martin reported excellent numbers before the bell and is gaining over 6% on very heavy trade. United Technologies is also moving well after this morning’s report.  The stock has had a great run this month and is now within striking distance of new all time highs.  General Dynamics(also reports tomorrow before the open) is trading at new ’19 highs as it extends its April 12th breakout.

More on NOC:

After suffering a very damaging post earnings breakdown back in July of last year NOC’s 200 day moving average has provided heavy resistance.  The 200 day capped the multi week October highs just prior to  another steep post earnings breakdown.  In late February the 200 day was in play again.  Both the February and March highs were marked there.  Ahead of tomorrow’s news NOC is finally putting some distance on the 200 day.  At mid day shares are trading at new 2019 highs and heading for their best close since the the October 24th earnings inspired flush.  With a solid base underneath, and the 200 day now losing its grip, NOC could be setting up for quite a run.  Investor action is certainly very positive today.

We recommended LMT back in March and are long the stock in some managed accounts. 

We recommended UTX in late March, we are long it in some managed accounts.

We are long GD in some managed accounts.

At time of publication we do not have a position in NOC.