I like this stock.
This is one of the stocks I have not sold out from. I believe in this company, it has solid fundamentals, and in times of war and conflict, it becomes an even more relevant company to invest in.
It has been avoiding this bear market quite nicely, but I see the market rally we had also had an effect on RTX.
While the RSI on the daily still shows some room for upward momentum, when I analyze the data in SPSS, I can see currently RTX is trading approximately 3 standard deviations from its mean.
The problem is, it went from trading 1 standard deviation away from its mean to 3 in a single day. This is too aggressive.
As a general principle in statistics, phenomenon generally rest within 1 standard deviation of their mean. Stocks are the same. They like this area to trade in and are drawn back to their mean the longer and father from their mean they rest. We could see a continuation in this 3 SD range for a couple of days, but I am anticipating a regression to the mean approaching.
Keep in mind, regression to the mean, as it pertains to stocks, don't generally happen aggressively. IT will be a gradual process. We can likely anticipate RTX to regress back to 2 SD, then 1 SD.
If you want to take a short position, price targets would likely be:
1. 95
2. 94
3. 92 (if we assume it will completely regress to the mean).
I have posted SPSS' percentile chart on the candlestick chart. Understand that this is just a bell curve I am referring to.
My personal plan:
At this time, I don't plan on shorting this. This is just a general interest post.
I will be looking to increase my long position size once I see a return within 1 SD of its mean (As an investment, not a day trade).
Analyst price targets of this stock is generally over 100$. I tend to agree.
RTX has amazing fundamentals. Good cash flow. Little debt. Multiple government contracts and is a major MAJOR supply, in fact a PIVOTAL supplier of military equipment for radar. They are also involved in radar tracking systems for US and Canadian army.
This is one of the stocks I have not sold out from. I believe in this company, it has solid fundamentals, and in times of war and conflict, it becomes an even more relevant company to invest in.
It has been avoiding this bear market quite nicely, but I see the market rally we had also had an effect on RTX.
While the RSI on the daily still shows some room for upward momentum, when I analyze the data in SPSS, I can see currently RTX is trading approximately 3 standard deviations from its mean.
The problem is, it went from trading 1 standard deviation away from its mean to 3 in a single day. This is too aggressive.
As a general principle in statistics, phenomenon generally rest within 1 standard deviation of their mean. Stocks are the same. They like this area to trade in and are drawn back to their mean the longer and father from their mean they rest. We could see a continuation in this 3 SD range for a couple of days, but I am anticipating a regression to the mean approaching.
Keep in mind, regression to the mean, as it pertains to stocks, don't generally happen aggressively. IT will be a gradual process. We can likely anticipate RTX to regress back to 2 SD, then 1 SD.
If you want to take a short position, price targets would likely be:
1. 95
2. 94
3. 92 (if we assume it will completely regress to the mean).
I have posted SPSS' percentile chart on the candlestick chart. Understand that this is just a bell curve I am referring to.
My personal plan:
At this time, I don't plan on shorting this. This is just a general interest post.
I will be looking to increase my long position size once I see a return within 1 SD of its mean (As an investment, not a day trade).
Analyst price targets of this stock is generally over 100$. I tend to agree.
RTX has amazing fundamentals. Good cash flow. Little debt. Multiple government contracts and is a major MAJOR supply, in fact a PIVOTAL supplier of military equipment for radar. They are also involved in radar tracking systems for US and Canadian army.
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