Textron Inc. operates in the aircraft, defense, industrial, and finance businesses worldwide. It operates through five segments: Cessna, Bell, Textron Systems, Industrial, and Finance. The Cessna segment manufactures business jets, single-engine utility turboprops, and single-engine piston aircraft, as well as parts, maintenance, inspection, and repair services. The Bell segment manufactures and supplies military and commercial helicopters, tiltrotor aircraft, and related spare parts and services. The Textron Systems segment produces unmanned aircraft systems; armored vehicles, turrets and related subsystems, and marine craft and smart weapons. The Industrial segment offers blow-molded plastic fuel systems, windshield and headlamp washer systems, engine camshafts, catalytic reduction systems, and other parts. The Finance segment provides commercial loans and leases for aircraft and helicopters.
Take a look at the 1-year chart of Textron (NYSE: TXT) with my added notations:
Like yesterday’s LINTA, TXT has also been trading mostly sideways for
the last 5 months. Over that period of time TXT has formed a resistance
level at $41 (red). In addition, the stock has also created a level of
support at $37 (blue). At some point the stock will have to break one of
the two levels that the sideways consolidation has created.
The Tale of the Tape: TXT has clear levels of
support ($37) and resistance ($41). The possible long positions on the
stock would be either on a pullback to $37, or on a breakout above $41.
The ideal short opportunity would be on a break below $37.
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wolfstreet.com / by Wolf Richter •
Late Friday, when the strategy folks at Goldman Sachs downgraded global stocks to “neutral” for the next three months, they gave a reason that would have been peculiar in normal times: “a sell-off in bonds could lead to a temporary sell-off in equities.”
OK, let’s forgive Goldman for flip-flopping. At the peak of the bubble, trigger fingers are nervous, and flip-flopping is the norm. Last week, another Goldman strategist, in a very bullish mood at the time, had raised his year-end target for the S&P 500 to 2,050. But that’s like so last week.