Alliant Techsystems Inc. (NYSE: ATK) — This company is the largest provider of ammunition to the Pentagon and a significant supplier to NASA. Along with the cutback of government funds to NASA, ATK’s sales to the Department of Defense are estimated to decline again this year following a 5% drop in 2010.

Late last year, the stock turned down from its bearish resistance line, breaking its 200-day moving average in January, and falling away from it following a rally in March. The stock is in a confirmed major bear trend with little support before its low of $60 made in June.

Owners should sell ATK at market, and traders may short the stock with a trading objective of $60. Short sellers are reminded to check with their broker for the ability to borrow shares and should always enter stop-loss orders at the time of execution to protect against unlimited losses in the event of a turnaround.

If you have questions or comments for Sam Collins, please e-mail him at samailc@cox.net.