Howard Lutnick just said something that should’ve sent every defense stock through the roof.

“We’re taking 10% Intel stakes… and we may be taking equity positions in defense companies.”

Most traders missed it. I didn’t.

This is the biggest catalyst the defense sector has seen in years, and it’s setting up my favorite play perfectly: Raytheon (RTX).

The Government Money Machine

When the U.S. government takes equity stakes in defense companies, your biggest customer becomes your investor. Revenue becomes predictable. Cash flow becomes guaranteed.

RTX is positioned better than anyone for this.

Why RTX Is My Top Pick

I’ve been trading RTX inside the War Room for months with multiple successful round trips. This government catalyst changes everything.

The technical setup is phenomenal – clean breakout hitting new highs while most investors worry about “peace deals” cooling off.

That’s backwards thinking.

We’re living in a multipolar world with China, Iran, North Korea, and regional conflicts everywhere.

Defense spending is permanent infrastructure now, not cyclical war trades.

Perfect Timing Into Q4

September and October are traditionally volatile months where traders trim positions. But defense stocks march to their own drummer – government contracts don’t care about seasonal volatility.

While everyone prepares for October weakness, RTX could hit new highs on partnership news.

The Bigger Picture

Lutnick’s comments signal a fundamental shift from transactional contracts to equity partnerships.

RTX gets first dibs because they’re embedded in every major defense program: F-35 engines, Patriot missiles, radar systems, cybersecurity.

You can’t run modern defense without Raytheon technology.

Your Action Plan

Loading RTX here with a simple strategy: buy the stock, hold through Q4, let the government partnership catalyst play out.

No complex options. Just pure conviction on secular defense spending backed by government investment.

When the government tells you they’re taking equity stakes in defense companies, that’s not a warning – that’s a roadmap.

RTX has the technology, contracts, and catalyst to drive significantly higher prices.

Sometimes the best trades hide in plain sight.

For more actionable trade ideas, make sure you’re tapped into Catalyst Cash-Outs Live.