$General Dynamics(GD.US)Conclusion: On January 28, GD fell about 4.8% intraday, mainly due to policy concerns outweighing earnings benefits; currently not suitable for immediate buying, wait for stabilization signals to track with "watch position + stop loss", do not chase declines or add positions.

I. Core reasons for the plunge (January 28)

1. Strong policy impact: Trump demanded defense companies suspend buybacks and dividends, triggering sector valuation reassessment and capital outflow from defense stocks.

2. Earnings benefits ignored: Q4 revenue of $14.38 billion (+7.8%, exceeding expectations of $13.8 billion), EPS of $4.17 (beating expectations of $4.15), but the market focused more on policy risks than performance.

3. Technical breakdown: Fell below the 50-day moving average, short sentiment heated up, intensifying selling pressure.

4. Macro and industry: High interest rates suppress capital expenditures, market concerns about "fixed-price contracts" compressing profit margins.

II. Is it suitable to buy?

- Short-term not suitable: High policy uncertainty, no clear stabilization signals, downtrend not stopped, easy to buy halfway down.

- Watch position feasible (small position): Small amount (about $698/2 shares), can track turning points, but must meet:

- Stop loss: If it falls below $340 (recent 3-month low), sell immediately to control losses at about 3%.

- Observation period: 1-2 months, wait for policy expectations to clarify and stock price to stabilize above $355 with volume.

- No position adding: Do not add funds before stabilization conditions are met.

III. Key observation indicators (consider adding positions only if 3 or more are met)

1. Price: Closing price stabilizes above $355 with weekly trading volume expanding.

2. Policy: Signals of relaxation in buyback/dividend restrictions, or government clarification of related requirements.

3. Fundamentals: 2026Q1 guidance not downgraded, orders/cash flow stable.

4. Market: Institutions upgrade ratings, sector capital flows back.

IV. Operation checklist (strict execution)

Operation Details

Buy timing Current price or pullback to $345-350, buy in 2 batches, 1 share each

Stop loss line $340, trigger immediate liquidation

Observation cycle 1-2 months, exit if no signals

Position adding conditions Meet 3+ observation indicators, then consider small fixed investments

Risk warning: Before policy risks are eliminated, the stock price may further decline; avoid blindly adding positions because "it has fallen a lot".