CHART OF THE DAY: The defence Sector ETF Is Telling Us No One Is Worried About The Fiscal Cliff

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Stifel Nicolaus strategist Dave Lutz recently told us that defence stocks are “ground zero” for the fiscal cliff, as the sequester would likely slash government funds going their way.

So, we’d consider the Aerospace & defence sector ETF (ITA) to be a decent proxy for confidence in a fiscal cliff deal.

LPL Financial’s Jeff Kleintop just tweeted that the ITA hit a major milestone.

“What Fiscal Cliff/Sequestration?” Kleintop asked rhetorically.  “The defence stock index hit a new all-time high today.”

Here’s a look at the year-to-date performance of the ITA via Bloomberg.  Anyone betting against this is getting slammed.

chart of the day, ita defence stock etf all time high, december 2012

Photo: Bloomberg

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