Of the four major defense-related stocks, The Boeing Company (BA) is the leader. It's a component of the Dow Jones Industrial Average, and the stock is up 18.0% year to date and solidly in bull market territory at 112.7% above its 52-week low of $163.69 set on Feb. 8, 2017.

General Dynamics Corporation (GD) is another defense stock on the rise. The stock is up 5.7% year to date and up 18.1% from its Feb. 8, 2017, low of $181.94. Lockheed Martin Corporation (LMT) is another strong defense stock that has a gain of 7.6% year to date and is in bull market territory at 35.2% above its Feb. 7, 2017, low of $255.58. Northrop Grumman Corporation (NOC) stock is also on the rise, with a year-to-date gain of 10% and in bull market territory at 45.6% above its Feb. 9, 2017, low of $231.98.

On Wednesday, Senate leaders reached a deal to increase military spending over the next two years. This bill should pass in the Senate, but it could meet resistance in the House of Representatives. If the deal gets done, spending on the military will rise by $80 billion this year and $85 billion next year, which begins on Oct. 1. Here's how to trade these stocks based upon weekly charts and key levels. (See also: 3 Under-the-Radar Defense Plays.)

The weekly chart for Boeing

Weekly technical chart showing the performance of The Boeing Company (BA) stock
Courtesy of MetaStock Xenith

The weekly chart for Boeing is positive but overbought, with the stock above its five-week modified moving average of $125.18. The 12 x 3 x 3 weekly slow stochastic reading is projected to end this week at 90.16, still above the overbought threshold of 80.00 and just above 90.00 as an "inflating parabolic bubble." Given this chart and analysis, my strategy is to buy Boeing shares on weakness to my annual value level of $250.43 and to reduce holdings on strength to my monthly risky level of $361.82. (For more, see: Why Boeing Is All Set to Soar.)

The weekly chart for General Dynamics

Weekly technical chart showing the performance of General Dynamics Corporation (GD) stock
Courtesy of MetaStock Xenith

The weekly chart for General Dynamics is positive, with the stock above its five-week modified moving average of $212.51. The 12 x 3 x 3 weekly slow stochastic reading is projected to end this week at 71.91, up from 69.66 on Feb. 2. Given this chart and analysis, I recommend buying on weakness to my annual value level of $188.88 and reducing holdings on strength to my quarterly and semiannual risky levels of $217.35 and $226.70, respectively. My monthly pivot is $210.06. 

The weekly chart for Lockheed Martin

Weekly technical chart showing the performance of Lockheed Martin Corporation (LMT) stock

Courtesy of MetaStock Xenith

The weekly chart for Lockheed Martin is positive but overbought, with the stock above its five-week modified moving average of $335.76. The 12 x 3 x 3 weekly slow stochastic reading is projected to end this week at 87.53, above the overbought threshold of 80.00. Given this chart and analysis, I recommend buying Lockheed Martin shares on weakness to my annual value level of $300.99 and reducing holdings on strength to my monthly and weekly risky levels of $350.75 and $353.05, respectively. My quarterly and semiannual pivots are $328.83 and $334.49, respectively. (See also: An ETF for Defense Spending Trends.)

The weekly chart for Northrop Grumman

Weekly technical chart showing the performance of Northrop Grumman Corporation (NOC) stock
Courtesy of MetaStock Xenith

The weekly chart for Northrop Grumman is positive but overbought, with the stock above its five-week modified moving average of $321.97. The 12 x 3 x 3 weekly slow stochastic reading is projected to end this week at 88.27, above the overbought threshold of 80.00. Given this chart and analysis, my strategy is to buy on weakness to my semiannual and quarterly value levels of $316.47 and $314.03, respectively, and to reduce holdings on strength to the Feb. 1 high of $349.19. My monthly pivot is $334.26. (For additional reading, check out: 10 Stocks That Can Outperform in 2018: Goldman.)