Defense Stocks vs. War: Six Months Later, the Charts Had the Last Word

At the beginning of the Middle East war, I was asked to take a closer look at the major U.S. defense contractors. The expectation seemed almost too obvious: more geopolitical tension, more defense spending, more orders — therefore defense stocks should thrive.

Logical? Absolutely.

What the charts were telling me, however, was almost the exact opposite.

Several of the largest defense names were sitting in mature Elliott Wave structures, some of them outright ugly. At the time, the conclusions felt counterintuitive enough that even I had to stare at the charts a little longer. War was supposed to be good for defense stocks. The technicals apparently had not received that memo.

Now, roughly six months later, we can revisit those roadmaps and see what actually happened.

In short: technicals won.

Full article: investingangles.substack.com