Hedge Against LMT Long Position

For Speculative Accounts Only: Buy a UTX Straddle: 2/17/17 $105 Puts, $125 Calls.  Jet Engines are most profitable aspect of fighter aircrafts.  UTX P/E only 12.62 with dividend of 2.44%.  If ATDT slashes defense budgets, this author believes UTX will fall proportionally more than LMT unless UTX is awarded the F-16 engine contract.  LMT is buffeted by F-16 India contract and high profile, prolonged debate of NATO countries purchase orders of F-35 contracts.

How Lockheed can save $600M on the F-35A. The proof is in the pudding because the stock was only down 0.26% during the broad sell-off on 1/30/17. After hours, down 0.13%, and excellent reentry point for those who missed the original recommendation.

A Leveraged Way to Play Jet Fuel Besides the Risk of Futures

For Speculative Accounts Only:  LUV 1/27/17 $50 Puts.  Trade activity was double yesterday of open interest.

Airlines are the most sensitive to the price of Crude Oil for Jet Fuel.  By 1/27/17, Thanksgiving and Christmas sales (the most profitable time for the airlines, Black Friday Sales had poor comparisons) should be baked into the stock.  Earlier than the next Fed move.  Also, consumer durables are in dire straits.  Just listen to the radio, TV, or internet banner ads for automotive leases and sales.

INTC held Steady During Yesterday’s Pummeling

Reiterate BUY on INTC: Intel has the #1 share in NAND based Solid State Drives being sold into the enterprise, where their processors enjoy a 95% market share.  There is a broad movement of ISPs to move from RAID5 to NAND SSDs.  They also have a strong position in IOT and smart cars. Dividend yield of 2.91%.

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Arctic Blast will Chill NA

The first intrusion of arctic air this week has already made its way into the Plains and upper Midwest, and will take aim on the Northeast Thursday into Friday. Another round of potentially even colder temperatures may then plunge south of the Canadian border and into the central states by this weekend, on the heels of Winter Storm Decima.

Some locations could see their coldest December temperatures in several years, and a few record lows may be threatened. Wind chills will make it feel like the teens, 20s or 30s below zero in the Midwest, at times, this week.

Conclusion: Reiterate BUY on CHK – Also See THIS

Popcorn will POP AMZNing

The company has expanded its Prime Now service, which delivers tens of thousands of products commonly found in convenience and drug stores in as little as an hour, to combine the ease of online shopping with the instant gratification of getting goods at a store.

Conclusion for Speculative Accounts Only: $950 Calls 1/19/18 LEAPS will identify with good comparisons to this years’ lackluster holiday sales.

Amazon (AMZN) CEO Jeff Bezos had some carefully chosen words to describe President-elect Donald Trump’s tech summit, held Wednesday afternoon in New York City’s Trump Tower.

“I found today’s meeting with the President-elect, his transition team, and tech leaders to be very productive,” Bezos told Yahoo Finance in a statement. “I shared the view that the administration should make innovation one of its key pillars, which would create a huge number of jobs across the whole country, in all sectors, not just tech—agriculture, infrastructure, manufacturing—everywhere.”

Struggling Cities Poised for A Rebound

The energy bust, for instance, pushed Houston down 42 places, to No. 68 this year. Fargo, N.D., a shale-oil hub that exploded in growth in recent years, fell from first among small cities last year to 15th in 2016.

Other parts of the Midwest haven’t been as lucky as some of the auto cities. The strengthening dollar has hurt exports this year, and that, in turn, has hurt cities dependent on foreign markets, such as Indianapolis, Lexington, Ky., and Little Rock, Ark.

Additional LMT Order from USA Ally

  • Israeli Prime Minister Benjamin Netanyahu said that the country’s “long arm” has now become even “longer and mightier” after receiving two US-made F-35 stealth jets on Monday (12 December). The two fighter jets are part of 50 jets ordered by Israel to beef up its air security.

LMT bottom may be found with dividend of 2.81% and P/E of 14.74.  P/E understates growth of fighters (both F-35 and F-16) to target of USA armed forces (especially Air Force) and international clientele in excess of 2,400.

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Reiterate Buy on CHK and Weakness Today

For Speculative Accounts ONLY: CHK Calls $8.00 2/17/17 at $0.47.

Temperatures may first drop into the teens or single digits Fahrenheit from the Great Lakes to the East Coast this week, said Shunondo Basu, a meteorologist and gas analyst with Bloomberg New Energy Finance in New York.  The cold may boost so-called heating degree day values, an indication of how much energy’s needed to heat homes and businesses.

There’s also a chance that snow blankets the northern Midwest and upper Great Plains through Christmas, he said Monday.

“The biggest cold outbreak is Thursday and Friday,” Rogers said. “It is going to be brutal.”