As an owner of PPA Powershares Aerospace/Defense, I have been thinking the same thing and have been watching the price action with regards to the election.

On a daily chart, I see a cup with a handle.
On a 60 minute, I see a downtrend broken to the upside.

Could it be that the aerospace/defense industry has contributed to enough democrats campaigns and the market knows this?

Bears watching with a hair trigger.

I own quite a bit of LLL as a result of being an employee there. I have no inside information, so don't get too excited, but I'm expecting our purchase of Titan to have some negative effects since they've gotten some bad press in Iraq and the Dems may want to be seen as "cleaning up" by getting rid of contractors that don't look good.

On the other hand, the balance of L-3 business units theoretically should do well if military budgets decrease (due to lots of investment in modernization instead of creating new platforms) and when we are NOT at war (my division does communications systems, and the military spends more on things like bullets and food during war and less on technology development). I've done pretty well buying LLL on the dips and reducing my exposure when the RSI shows that it is peaking. Nothing amazing, but it's the only single stock I can buy in my 401k and so it provides some solid returns there. I'll probably be buying again once it looks like the price has hit a floor. Hopefully that's at the end of December when my employee stock purchase buys my stock for the last 6 months of contributions...