Defense Contractors Scan

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Defense Contractors Scan

Scan symbols 9
BADFENGDITALHXLMTNOCPPARTX
Watchlists 1
@defense-contractors
raw scan snapshot — prices as of scan date, not live 24 rows · screens, not recommendations ported fromresearch/classic/scans/_archive/2026-04-28-defense-contractors.mdscan slugdefense-contractorssource typescan-archive

Defense primes in deep capitulation — LMT RSI 18, NOC RSI 20, GD RSI 27, while RTX/PPA/BA hold up. The "defense premium" did NOT materialize despite UAE/OPEC drama; this is a sector-wide pullback into entry zones.

Quick Snapshot

Signal Reading
Overall 🟢 Oversold — primes in extreme oversold, golden crosses still intact
Key insight LMT/NOC at RSI 18-20 with -25% from highs is the cleanest setup in months; if thesis is intact, this is the entry
UAE/OPEC reaction No defense premium showed up — names actively SOLD-OFF this week (LMT -10.4%, NOC -7.3%, LHX -6.1%). Market read it as growth scare, not security trade

Price Table

Stock Price RSI vs SMA20 7D% 30D% 3M% 52wkHi Trend Action
LMT $512.29 18 ↓ -13.1% -10.38% -14.41% -17.27% -26.0% down ✅ Strong Buy
RTX $201.41 53.7 +1.8% +2.36% -2.26% +1.63% -6.1% strong-up 🔒 Hold
NOC $577.82 20 ↓ -11.6% -7.26% -13.96% -16.64% -25.4% down ✅ Strong Buy
GD $313.68 27.4 ↓ -6.2% -4.68% -7.53% -9.95% -15.2% down 📈 Accumulate
LHX $324.88 34.4 -6.2% -6.13% -4.43% -8.43% -14.3% weak-down 📈 Accumulate
BA $230.72 60.4 +4.7% +3.86% +21.94% -1.42% -9.3% up 🔍 Watch
ITA $216.21 37.4 -4.1% -4.77% +2.57% -7.06% -13.7% weak-down 🔍 Watch
PPA $176.53 55.1 +3.2% +0.99% +0.72% -2.35% -5.2% strong-up 🔒 Hold
DFEN $59.50 36.4 -13.2% -14.22% +4.85% -25.44% -39.1% down ⚠️ Caution

Tier Analysis

EXTREME OVERSOLD (RSI < 25): LMT (18), NOC (20). Both -25% from highs but golden cross intact and up YoY (LMT +11%, NOC +19%). Classic capitulation tier — fundamental thesis (DOD budget, missile/Pacific shipbuilding pivot) hasn't broken; what broke is sentiment. Insider/budget catalysts could snap these back hard.

OVERSOLD (RSI 25-35): GD (27), LHX (34), DFEN (36). GD has been chopping for 3 months but golden cross + 17% YoY suggests this is digestion not breakdown. LHX with +50% 1Y alpha +17% — strongest fundamental in oversold tier.

RANGEBOUND/UP (RSI 50+): RTX, PPA, BA. RTX is the only prime in strong-up trend with golden cross — relative strength leader. PPA (ETF) holding +20% alpha vs SPY. BA's 30D +21.9% on turnaround narrative — but death cross still present, watch for failure.

Caution: DFEN -39% from high, 3x leveraged — only for tactical mean-reversion, not core position.

Entry Zones

Stock Price Zone RSI 30D% Setup
LMT $512.29 <$520 18 ↓ -14.4% Capitulation; SMA200 $519 support holding; +11% YoY
NOC $577.82 <$600 20 ↓ -14.0% Capitulation; -25% from high; golden cross intact
GD $313.68 <$320 27.4 ↓ -7.5% Pullback to SMA200 area; F-15/Stryker franchises
LHX $324.88 <$340 34.4 -4.4% Best 1Y alpha (+17.6%) of primes; -14% from high

Action Matrix

Action Stocks Why
✅ STRONG BUY LMT, NOC RSI 18-20 capitulation, golden cross holding
📈 ACCUMULATE GD, LHX RSI 27-34, pullback to support
🔒 HOLD RTX, PPA Strong-up trend, golden cross, RTX +26% alpha
🔍 WATCH BA, ITA BA turnaround unconfirmed (death cross); ITA tradable but not best entry
⚠️ CAUTION DFEN 3x leveraged, -39% from high — tactical only

What Changed vs Apr 10

  • Massive capitulation in LMT and NOC. RSI 47/42 → 18/20. Both lost 10-14% in a month. This is sector-wide de-rating, not idiosyncratic — likely budget continuing-resolution noise + UAE/OPEC creating "war risk doesn't pay" narrative.
  • GD broke down further: RSI 38 → 27, now in oversold tier. Approaching SMA200.
  • LHX flipped from leader to laggard: Was strong-up RSI 51 in early April, now weak-down RSI 34 with -6% week.
  • RTX is the new sector leader. Held strong-up trend while others capitulated. +26% alpha 1Y, +37% 3Y.
  • BA up, but death cross present. +21.9% 30D rally on turnaround chatter, but technicals haven't healed.
  • DFEN crashed -14% week — leveraged fund mechanically blew out as primes sold off.
  • No UAE/OPEC defense premium. Defense names sold off into what should have been a tailwind — telling about positioning, suggests longs were stretched and got flushed.

The Gold

Key Discoveries

Discovery Implication
LMT/NOC RSI sub-20 with intact goldenCross First clean entry tier in months — buy if thesis intact
Defense primes sold off DESPITE Mideast escalation week Positioning was stretched; sellers used catalyst to exit
RTX is sole strong-up prime (+26% alpha 1Y) Quality flight within sector — hold if held

Open Questions

  • Is LMT/NOC weakness about budget delays or Pacific pivot losers? Need DC catalyst clarity.
  • BA: real turnaround or another head-fake? Death cross still present.
10 events
DateTypeEvent
Apr 28 ScanGeopolitical Risk Scan Apr 26 ScanDefense Contractors Scan Apr 13 ScanGeopolitical Risk Scan Apr 13 Scan4 — DEFENSE CONTRACTORS Apr 10 ScanDefense Contractors Scan Apr 10 ScanGeopolitical Risk Scan Apr 3 ScanGeopolitical Risk Scan Apr 3 ScanDefense Contractors Scan Mar 31 ScanDefense Contractors Scan May 29 ScanGeopolitical Risk Scan

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