Industry Group Strength: Aerospace & Defense Equipment

When looking for good long candidates, I like to sift through the various industry groups and sectors in order to find stocks that are setting up to run higher. One industry group that has recently caught my attention is the Aerospace & Defense Equipment group. In the group, there are three stocks that I find are good set ups. They are: ASTI, HXL and DCO




Ascent Solar Technologies (ASTI)


Yeah I know that this one has had quite the run up already, but with merger & acquistion (M&A) talk abound as well as higher oil prices making solar attractive, ASTI may go even higher. Perhaps we will see a little side ways consolidation before the next move up. I would wait until the stock takes a dip near its 20 day before grabbing a position, just to be safe.

You can also see that money flow hasn't been too healthy. I like to see money flow in the positive, not the negative....

Ducommun Inc (DCO)






I like DCO because its in the process of taking out some multi-year highs. What I don't like about it is that it has a very erratic and choppy chart pattern. This is a wild, undulating mover, so becareful where you snatch it up..

Try to grab it low 26 and cut your losses if it falls below the 50 day.



























Hexcel Corp (HXL)




I like this one because of its strong accumulation. I am a little iffy on it and would like to see more positive action before fully recommending it.