Stocks on Tech Trader

Summary: RTX is in a sharp near-term downtrend with heavy selling after earnings, and we just took a loss exiting on April 22, so cash is the prudent move to avoid whipsaw while it finds a base.

The technical picture from the daily data shows a stock that ran hard from the 125 area last spring all the way to over 212 in early March before rolling over. The decline has accelerated since mid-March, with the post-earnings drop from the 195 level to 173 in just a few sessions on elevated volume. That kind of momentum shift right after a beat-and-raise quarter (strong revenue, EPS well above expectations, full-year guidance lifted on defense and commercial backlogs) usually signals either profit-taking from earlier buyers or broader market rotation, but it doesn't scream immediate reversal.

Fundamentals remain solid longer term—record backlog, munitions demand tied to geopolitics, commercial aerospace recovery—but the next 7-10 days look messy. Price is still making lower lows and hasn't shown any meaningful stabilization or higher-low pattern that would give me confidence to step in long right now. Shorting feels risky too given the positive news flow and analyst targets still well above current levels around 200+.

We booked gains on the first two trades this year and only ate a loss on the most recent one, so there's no urgency to jump back in while the chart is still clearly weak. Sitting in cash preserves capital and keeps us ready to act once either buyers defend the 170-172 zone with conviction or we see a clear change in character on the daily bars. If it chops sideways here for a while, we'll stay patient rather than risk getting chopped up. This is real money we're trading; high-conviction setups only, especially after a recent exit. We'll reassess in a few days as the post-earnings volatility settles.