Conclusion, Investment Implications, Strategy

The iShares U.S. Aerospace & Defense ETF (ITA) is currently in the midst of a February 2023 major uptrend and making new all-time highs amid monthly expansion in investor assets and quarterly relative outperformance versus the S&P 500 (SPY).  Together, these factors establish favorable conditions for more outright strength and relative outperformance by ITA and other Aerospace/Defense related assets.

ITA Setting New All-Time HIghs Amid Expanding Assets and Relative Outperformance vs. The S&P 500

The upper panel of Chart 1 below shows that the iShares U.S. Aerospace & Defense ETF (ITA) is in the midst of a November 2023 major uptrend, according to its 200-day moving average, and is currently breaking out to new all-time highs from four months of sideways investor indecision.  The middle panel shows that the total net assets invested in ITA (AUM) have been expanding on a 21-day monthly basis since Mar 17.  Expanding assets indicate bullish conviction in higher prices.  The lower panel shows that ITA has been outperforming the S&P 500 on a 63-day quarterly basis since Feb 25th.  

As long as these three conditions remain intact, ITA is likely to continue moving higher in the weeks ahead.

Chart 1

Current Sector & Industry Group Ideas

Table 1 below is also accessible via the Asbury ETF Trade Ideas rectangle at the top of the Research Center.

Table 1

Click the table to make it larger