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The fear-trade after the election is driving gun stocks higher. The logic is simple, even if it is more than up for debate. Those favoring guns tend to buy up guns if they fear that future regulations will limit gun sales or will curb the access to the gun market.

Smith & Wesson Holding Corp. (NASDAQ: SWHC) is surging by 7.5% to $10.13, against a 52-week range of $2.72 to $11.24. This one raised guidance before and now it is probably safe to assume that the fourth-quarter gun sales will be boosted by much more than just deer hunting rifles and shotguns to hunt ducks and geese. Sturm, Ruger & Co. Inc. (NYSE: RGR) is up 3% at $45.97, against a 52-week trading range of $29.11 to $58.42.

These two were not included in our sector winners and losers from the 2012 election. That is not because they were overlooked. It is because this is too tiny of a component as far as what investors can really look at.  The total sales projections for 2012 from Thomson Reuters is only about $467 million on Strum, Ruger and almost $537 million for Smith & Wesson.

Alliant Techsystems Inc. (NYSE: ATK) is a defense contractor that has exposure to the fiscal cliff, but it also won a very large munitions contract, which we understand is going to hold up whether or not military spending cuts come. We would still keep that as a tentative, but Alliant is said to be the U.S. bullet king. Its Sporting Ammunition division supplies small-caliber ammunition to federal and local law enforcement agencies, military and sport-shooting, and hunters. Its ammunition brands include Blazer, CCI, Estate Cartridge, Federal Premium, Fusion, Speer and Speer Bullets. Alliant Tech is down, as it is more of a defense contractor per its overall category.

JON C. OGG