Defense and aerospace stocks could get breakout to new highs

One of the items on my watch list is DFEN, the Direxion Daily Aerospace and Defense Fund. This ETF tracks companies like Boeing that would supply the US government with jets and drones in the event of a war with Iran. I'm not buying the fund yet, because it's at the top of its month-long parallel channel, and it's very close to its all-time high at 64.50, without much support on the volume profile. However, if it does start to look like we're going to war with Iran, I think we may see a breakout. I am watching closely to buy any breakout above either the parallel channel or the all-time high.

Comment:

After hours this hit a new all-time high of $65 per share. I expect a climb tomorrow as traders react to the breakout above this important level.

Comment:

DFEN pulled back this morning, but we breached 64.50 again just now.