War Chest — Defense Momentum

Starting from an all-cash portfolio, I ranked the 10 aerospace/defense names by 3-month price momentum (relative strength), which is the core signal in this strategy. The top 4 were Rocket Lab (RKLB, +23.3%), Boeing (BA, +9.1%), General Dynamics (GD, +7.6%), and RTX (+1.7%) — while Lockheed, Northrop, L3Harris, HII, Kratos, and AVAV all posted negative 3-month returns and were excluded. This mix nicely blends a smaller, high-growth space innovator (Rocket Lab, riding an $8B Iridium acquisition announcement and NASA launch wins, though it has pulled back sharply this week on profit-taking) with three large-cap primes: Boeing (benefiting from higher 737 MAX production rates and strong Q2 delivery numbers), General Dynamics, and RTX (both showing steady defense-driven strength). Each of the four is bought to an equal 25% weight, fully deploying the cash while respecting the 30% max-position cap and long-only/no-leverage constraints.