Defense

I think the recent pull-back in oil makes a good buying opportunity for select energy stocks. The charts have to look decent in order for me to pull the trigger. I would lean toward energy stocks that are oversold.

Now to defense...

I am also bullish on defense stocks, especially since an "attack" seems immanent. Raytheon (RTN) and Lockheed Martin (LMT) have great fundamentals and trade at 15X forward earnings. If you like to bargain pick and don't care about the technicals then I would suggest you look at Armor Holdings (AH) and L-3 Communications (LLL). AH and LLL both have forward P/E ratios under 12. The two big momentum plays are the prison stocks (Corrections Corp of America (CXW) and The Geo Group (GEO)).

Note: Invest at your own risk. This is not a recommendation.