'Trading Nation' Traders Debate On Defense stocks

On CNBC's "Trading Nation," Craig Johnson of Piper Sandler and Danielle Shay of Simpler Trading spoke about the defense stocks.

Shay doesn't see a buying opportunity in the defense stocks and she thinks they're rallying directly into the resistance. She's not anticipating the sector to do well under President Biden's administration because the environment is not going to be the same as under President Trump and the spending is not going to grow. She would sell call spreads in these stocks.

Johnson said that the chart of iShares US Aerospace & Defense ETF ITA looks very good. He noticed an ascending triangle setup and the stock is breaking out toward new highs. He is a buyer of defense stocks.