Is this selloff giving you an opportunity to hack into the cybersecurity stocks? (June 29, 2015)
I want to look at cybersecurity here. This ( NYSEARCA:HACK ) has been really taking it in the shorts, by the shorts, since last week. Down almost 10 percent, but look where it’s pulled back to, the 50-day moving average where it’s hit, it just like started there. But Boom! Boom! Boom! Boom! Four times this has hit the 50-day moving average, the first three it’s bounced. Now, look for a bounce tomorrow. Big volume, big volume on the sell-off in the market so it’s only right that this should pullback.
If we do get a bounce here, don’t expect a return to its former glory. It’s bouncing at 31.00, it’s on up to 35.00 by the Fourth of July. It’s not going to happen. Look at all the volume here, massive volume. We correspond that with the price, so when the volume comes in the trend picks up and now we’re getting the crash. So we’ve got a little bit of a hangover from a pretty good party, and it was a great party. Just wait for it.
Palo Alto Networks ( NYSE:PANW ), nothing wrong with this trend. You’ve got to kind of like the fact that this stock has pulled back; it’s giving you an opportunity here. Hopefully, lets cross our fingers, if we get a pullback to say 165.00 that is a good low-risk time to be buying this stock. That’s what you want to do.
We’ll look at a couple more. Fortinet ( NASDAQ:FTNT ); a little bit choppier here. Again, 50-day moving average, it’s held this how many times? One, two, three times, now the fourth time is the charm. It depends on what the charm is right? Cyberark ( NASDAQ:CYBR ). This has been in sideways consolidation, it still is. I don’t find this a compelling buy just because it has no upside momentum. Here, at least you’re buying an uptrending stock on a pullback.
Here ( NYSE:PANW ), you’re buying an uptrending stock on a pullback. All of these are the types of things that work. FireEye ( NASDAQ:FEYE ), this got really ahead of itself on a weekly chart, the pattern works, I love this pattern, but we just need to wait for the little green box. We need to wait for there to be some evidence that this sell-off has run its course. I like the fact that volume is lighter today than it was on Friday, but I want to see the stock start to bounce off of this level and that’s when I will be a little bit more eager to get into FireEye ( NASDAQ:FEYE ). That’s my take on these cybersecurity stocks.
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