In spite of the recent geopolitical tensions in the middle east, and the US elections, A few US defensive stocks caught my attention for potential longs, they're as follow: Lockheed Martin Corporation (ticker: LMT), Raytheon Company (ticker: RTN), General Dynamics Corporation (ticker: GD), Northrop Grumman Corporation (ticker: NOC). When I looked at them at first, they look like the perfect candidates to go long: well-established bull trends, no volatility, 80+% institutional ownership, low beta, good dividends and income, how not to love them? However, there's one thing that is common to all of them: the insiders are selling and this is to me the most important sign that there's something wrong with a stock, they always know something we don't.
Conclusion: there's no way I'm buying their positions, this all smells like a distribution at the heights of a bull trend, followed by sell off. And with the S&P500 on the brink of a sell off (see my previous post
US stocks on the brink of a massive sell off), I see only one way for these stocks and it is down.
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