Once in a while a stock sets up for a big drop. NOC is doing that now. Today is an excellent chance to position for this. It is not too often that you get the chance to profit from such a move. Short here, or better yet buy some Jan 40 puts. A move to 32 by then is very likely.
What do you know that makes you think NOC is going down to 32 by January? The last time it was that price was March 2009 or so. During the depths of the Great Recession of 2008/2009. If we go into a double dip recession I would say that would be a safe bet. But that would be a safe bet for a lot of other stocks.
First the chart shows a head and shoulders top. The right shoulder has made 3 moves above the 50 EMA which have failed. This is using a weekly chart. The third or forth attempt at this line with failure is a perfect shorting point. Second, the pullout of troops in Iraq and the pullout coming in Afghanistan will lead to numerous equipment cancellations. Already a big defense contractor nearby has eliminated a shift and has seen numerous cancellations.