FEATURED CONTENT

Bull or Bear Market… Doesn’t matter

Kyle Dennis’ new, 5 Min Strategy is poised to double Your Money Weekly!

Michael S. made 173% with Dollar Ace. So can you!

 

Today’s trade: Kratos Defense & Security Solutions Inc. (KTOS)

Jeff WilliamsJeff Williams ·

The set-up: For anyone following defense stocks, it’s no secret that many in the sector have been up near or over 100 percent in the last 52 weeks. Kratos Defense & Security Solutions Inc. (KTOS) is no exception, as its shares have soared from $523 in late October of 2016 to a high of $12.91 just a few weeks ago.

After a short pull back, I think KTOS is setting up for the next leg higher, triggered by the August 2 announcement that its Modular System Division received a $10 million contract for specialized hardware and modular systems in support of a leading anti-ballistic missile defense system expected to be deployed internationally.

Why now: The tension between North Korea and the United States is mounting. It seems like each morning, I read the headlines and one side or the other is testing intercontinental ballistic weapons, so the timing of the $10 million dollar contract is perfect from a fundamental stand point. Now add in the technicals, which show KTOS has recently bounced off the mid-$10 dollar range four times in the past two months and you’ve got a prime stock in a hot sector ready to reverse and head higher. I just had to be a player.

My play: Tuesday afternoon – after the contract was announced — I bought 1,600 shares of Kratos at $11.15 cents per share as the stock came off a recent three-day down pattern, followed by back-to-back “doji” candles (great candles for showing a reversal of the trend).

While I have filled my position in the stock, I think it is currently buyable in the $10.75 to $11.30 range.

I’m targeting a return to the 20-day moving average line at $12 dollars, which could net me well over $1,000 in profits on a swing that I’m looking to pay out between one and five days. My stop is set at $10.50 to limit my downside exposure, but based off of Tuesday’s green candle, I’m thinking we head up here short term.

#-#-#

Jeff Williams is the lead trader of PennyPro.com. He is a short-term trader of stocks under $10 a share. At the time this article was published on RagingBull.com, he held 1,600 shares of KTOS as described in this commentary – but had no options or open orders on the stock — and was planning to trade it accordingly. Prior to his current trade, he has not been in the stock at all in 2017.

You may also like

Exclusive System Tracks Wall St. Insiders

“Dollar Ace Simply Exposes Information That Wall Street Wants To Keep Quiet” Said Kyle Dennis
“One member, Wesley M., has already reported 360%+ gains in just a few short days. Don’t miss this!”
(Reserve Access Now)

“What Recession?!” Jason Bond nets $55,060 in realized profit in One Day

After going 6 for 6 on profitable trades recently, we caught up with Jason to ask how he did it.
Check out Jason’s exclusive interview revealing this tightly guarded strategy. (Watch Now)

RagingBull.com Co-Founder, Jeff Bishop, Launches High Conviction Trade Service

“We listen to our clients and we give them EXACTLY what they want, so we designed a service to deliver 1 trade, 1 time a week, with a 100%+ PROFIT TARGET, directly to your inbox every Monday before the market opens. (Read More)

Be a Better Stock Trader, Starting Today

Get the expert insights, tips and strategies you need to optimize your trading skills and profiles
START NOW