Ride or Slide: United Technologies (UTX)
Jul 4th, 2008 | By Charles Delvalle | Category: Stock Market InvestingCharles Devalle says: “Just when you thought things were at their worst, now investors are worrying about the election. Obama wants to pull troops from Iraq, which would mean less defense spending. McCain isn’t in a hurry to pull troops out, which means a continuation of defense spending.”
Once upon a time, the defense sector was the place to have your money. From wars in Iraq and Afghanistan, the U.S. was spending tons. Is the party over? That’s what our reader Paul was wondering when he asked…
Subject: UTX United Aircraft?
Hi Charles, Shares are down perhaps because of building slump dropping HVAC and elevator backlog? This seems to be a well-managed company. Jet engines doing well (Pratt-Whitney) and more efficient ones will go into the newer lightweight composite fuel efficient jobs the survivors will have to be flying to be competitive. Whatcha think? Paul
The whole sector is being downgraded. It explains why United Technologies (UTX) is suffering. The scariest part… airlines should reduce their orders in the next two years as they cut costs to cope with higher oil prices.
Just when you thought things were at their worst, now investors are worrying about the election. Obama wants to pull troops from Iraq, which would mean less defense spending. McCain isn’t in a hurry to pull troops out, which means a continuation of defense spending.
That’s a huge uncertainty that won’t be fully resolved until after the election in November.
Technically, the company is a falling knife. Well, that is unless you look at their weekly chart. They are sitting just above their 200-week moving average. While this may look tempting as a buy, when you look back, you’ll notice the last time they hit their 200-week average, they still fell under it.
In other words, there’s no real pattern of their 200-week acting as support. The last thing you should do is buy because your hoping a pattern emerges.
While I believe the sell-off in this company is overdone (and we may see a bounce), this stock probably won’t perform until after the November election.
Let United Technologies (UTX) slide.
Advertisement
Few know it, but there’s a way to get the market to pay you cold hard cash, instantly, without having to buy a single stock, bond, option - or anything.
Just recently, some folks who discovered this unique strategy had an opportunity to scoop up $350, $1,000 and $1,150 instantly… without paying out anything. And just this past October, one gentleman used this strategy to add over $11,000 to his trading account, free and clear.
I know this sounds hard to believe, but if you follow the link below, you’ll see exactly how they’re doing it… and learn why now’s the perfect time for using this simple little strategy.
Charles Delvalle is a self-taught market-timing professional and value analyst who's followed and invested in the market for the past ten years. He uses a unique combination of technical and fundamental research to pinpoint rapid profit opportunities with stocks and options.
Charles is also a staunch contrarian and takes pride in finding undervalued sectors and discovering undervalued, cash-rich companies. He frequently mocks government stupidities and points out the "inaccuracies (or lies, take your pick) that government reporting frequently dispels as "truth".
