The CEOs of our little liberal military industrial complex are like made men in the Mafia. It is a long standing theme of mine that as part of the coming economic and stock market collapse we will see lots of these organizations turn on each other and infighting will take down many of the mob bosses. Today Louis Chenevert got his walking papers from military contractor UTX. These guys never leave because they want to. They leave because they are forced out and this is often done when they know a very bad quarter is coming up and they want to get ahead of the damage by firing the offending capo. Of course, when the entire tide is sinking that means a lot of capos will get double taps in the coming 2 years.
So lets go to the charts and see what they have to say. Well, the UTX chart is screaming "SHORT ME NOW!!". I see 5 clear waves down and then an a-b-c retracement back up to exactly the 61.8% fib. That last little spidery move is likely going to reverse just as quickly as it was created and we should expect gaps downward as wave 3 plays out. Pick your favorite Jan 2016 puts on this one even though the chart implies that the May 2015 $90 puts will likely be in the money. Prices below are last, bid, ask from Yahoo but I know they are old because I just paid .90 for 10 contracts in order to get my toe wet here.
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