This Optics Stock Is a Play on Both Military and Space Applications

Fear of Missing Out (FOMO)

Market action is positive on Monday morning as investors await further developments in Iran. President Trump is scheduled to speak at 1 p.m. ET, and it is highly likely that he will reiterate threats about the massive bombing of infrastructure. Iran has continued to publicly denounce the likelihood of a deal, but negotiations are obviously taking place.

I'm not sure why, but investors appear optimistic about some sort of positive development. The price action is good with breadth running close to even and the S&P 500 up about 0.4%. More importantly there is favorable chart development in many smaller stocks. Many of the stocks that I have been holding longer term are seeing clear signs of support as well as some higher highs.

Follow-Through Still Needed

As I've discussed, the market needs a solid follow-through day to confirm a change in trend. We have been drifting higher the last few sessions after the big jump on Tuesday, but this action isn't strong enough to confirm a change in trend. Obviously it is positive, but the risk of a negative news reaction is extremely high and the S&P 500 still has a substantial hurdle at the 200-day simple moving average, which sits at 6647.

I'm not willing to do any major buying with significant news about to hit. That does not seem to be bothering other market participants right now. There appears to be more FOMO than fear of a failed bounce. If the bulls are caught leaning the wrong way it could get ugly fast.

My Game Plan

My game plan is to not get caught up in trying to predict short-term index moves. I don't see any edge trying to guess what is going to happen next. I'm surprised that there isn't more concern about oil, but I think investors are hoping that any progress on Iran will fix that problem. That probably isn't true, but I'm not going to argue with the Market Beast.

My focus is on individual stock picking. I'm liking what I'm seeing in many stocks and am itching to put more money to work, but I want to see what the indexes do in reaction to the news flow.

Syntec Optics Holdings

Syntec Optics Holdings (OPTX) is a Rochester, New York precision optics manufacturer that has been shifting its business toward defense and space applications. The company recently announced over $4 million in new defense purchase orders covering missile guidance, night vision, surveillance, targeting, and mixed-reality battlefield systems.

The Pentagon is equipping soldiers with augmented reality headsets that feed AI-powered intelligence directly into a warfighter's field of view. Syntec makes the optics that go into those headsets.

The company also supply components for night-vision goggles, laser guidance systems for missiles, and optics for low-earth orbit satellites. These are precision components where domestic manufacturing capability and U.S. compliance requirements matter to the Pentagon, giving Syntec a structural edge over foreign suppliers. The defense AR/VR segment alone is projected to roughly double from $1.7 billion in 2025 to $4.3 billion by 2030.

Technically, Syntec hit traders' radar screens in late December when shares ran from around $2 to $9 over the span of several weeks amid a spate of contract wins. Since then, the stock has spent the past couple of months digesting those gains by forming an ascending triangle at highs, and last Thursday pushed toward lateral resistance on increased volume. I'm looking for a break past resistance and will look to build positions in client accounts as the chart develops.

At the time of publication, Rev Shark was long OPTX.