2nd Dec FXTP Monday Market Update #165: US Defence Stocks vs European Defence Stocks – who looks better?

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Hello Traders,

Thanks to those of you who joined us today. I should reiterate that the Monday Market Update is just that. A big picture overview of the markets, with a few ‘charts of interest’ thrown in. There are no trade recommendations, this is not a signal service, nor trade recommendations – just what I am looking at and interested in.

Today we looked at; FX STAM, Lockheed Martin Corporation, ($LMT), Unusual Machines Inc ($UMAC), Northrop Grumman Corporation ($NOC), Rheinmetall AG ($RHM), Leonardo ($LDO), Qinetiq Group ($QQ.)

The discussion focused on the impact of recent geopolitical events and market trends on defence stocks. Key points included the post Trump victory trade of shorting European stocks and longing of US stocks, apart from Defence Stocks with significant effects on companies like Lockheed Martin, which saw a price drop following Elon Musk’s critical comments on the F-35. Northrop Grumman also experienced a bearish rejection, falling post-election. European defence stocks, such as Rheinmetall and Leonardo, benefited from the decline in US defence stocks and Trump’s views on NATO. Qinetiq faced a bearish rejection from £4.90, after its  breakout from its previously traded range between £3 and £4. The conversation emphasized the importance of risk management in volatile markets influenced by political statements.

We also covered the usual suspects: $DJIA, $NDX, $SPY, $RTY, $DAX, $FTSE, $N225, $WTI, $XAUUSD, $XAGUSD, $BTCUSD, $USD, $DXY, $JPY, $AUD, $CHF, $NZD and $GBP.

Have a great trading week, and I’ll see you next Monday at 1230.

Trade well,

Paul

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