Bullish on Cybersecurity We are becoming more and more dependent on the internet. Along with this increased dependence the social desire for cyber defense will grow. Even at high costs the demand and necessity will be strong.
A single company will not monopolize security of the internet - it's too big and too complex - but I do think a broad index of companies building the "immune system of the internet" can benefit from this trend.
Supporting this trend are:
continued political cyber warfare & allegations lawfareblog.com
the release of CIA Hacking Tools ("zero day" exploits etc.) wikileaks.org
Hospital ransomware attacks - speaking to someone working in hospital data - hackers taking control of hospital data and holding it as ransom is more common than many of us are aware of. "The Federal Bureau of Investigation (FBI) reported a fourfold increase in ransomware attacks from 2015 to 2016. Those attacks resulted in a total of $1 billion being paid to hackers, the FBI said." medlineplus.gov
The Elliott Wave and technical analysis perspective:
Two cybersecurity ETFs $HACK & $CIBR have been trending in a bullish channel since 2015 and 2016 respectively, after tracing out a clear zigzag corrective patterns on long-term charts.
The two primary counts suggest further fifth wave upside at Intermediate or Minor degree.
The leading count is in red on the $HACK chart and depicted on the CIBR chart. Wave 3 is extended and wave 5 has begun tracing out the initial first and second waves.
The alternative count in blue on the $HACK charts illustrates an extended fifth wave in which Minute waves ((i)) and ((ii)) are complete and the initial first and second waves of wave ((iii)) of 5 are near complete suggesting a (iii) of ((iii)) of 5 spike is possible soon. $31.50 - $32.00 would be the first target zone.
RSI on $HACK is just shy of bullish territory and has been trending bullish with lower highs since February 2016.
Volume on $CIBR is trending up with higher highs suggest there is building strength for further upside.
Internet
Buy NFLX Netflix broke out from the downtrend but indeed there happened nothing last 8 days. But in a long range from 2012 lows to 2015 highs NFLX had a good correction at 85 = 38,2%. What makes me happy about a bullish scenario? I love this 3point extension after the split 07-15-2015. Since the level of 90$ = 23,6% stabilized prices after a long series of down gaps. So I follow the bulls here. :))))))))))))))
$MGT Looking Very Bullish After Appointing McAfee CEO / (EW)www.cnbc.com
I decided to analyze this stock after hearing about McAfee being appointed C.E.O. and the massive gains that were made that day. On the monthly chart it appears that MGT19.69% may have just completed a double zigzag pattern or possibly a triple pattern (which we can't see because of the 10 year gap in public trading, I've also hidden the data prior to 1995 because it is not relevant to this pattern due to the time gap). If it is a double pattern that would imply up to an 80% retracement, if it is actually a triple pattern then it would imply up to a 61.8% retracement, but it would also mean that the pattern started from a much higher price. For now since we only have consistent data going back to 1995 I am going to just assume that 80% is the max target. Now this obviously means that this stock could increase up to 200,000% from 1.5, so a fortune could be made from just a small investment in this stock . The risk to reward here is very very good. You may lose everything if the company some how went bankrupt (which is unlikely) but the gains of 2000x whatever you put in makes this trade well worth the risk so long as you do not risk too much of your capital. Even if it only gets a small retracement it is still going to be a very large gain because it is at such a low price as of now. It may take a couple of years to finish this retracement but it is very likely to grow massively if this pattern is correct.
Breaking the 0-B trendline as quickly as it has is also a good sign that this will continue going up for at least a few months. The Elliott Wave pattern seems to fit very well. Being that this is the 2nd largest bullish monthly candle that this stock has ever had (and its only the 12th of the month) it is very likely that this is a significant bottom. The yearly candle looks very bullish as well. The momentum on the monthly chart is a massive bullish divergence and has been waiting to play out, I think that it's finally time for it to start gaining some bullish momentum.
McAfee and his expertise in computer security gives this company a competitive advantage in their internet-based applications. The indicators look great and the fundamentals have just had a significant change, this could be a formula for a massive trend change. It will definitely be interesting to see if this count plays out like expected.
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Pennies to Thousands End of Day CandidWe like it because the 5 and 20 crossed, i, the William´s % R is above, it is above the CCI, the daily candle is positive, it has an increasing volume,, above the 50 and 20 EMA goal line, the PVT is positive, the MACD crossed, the PVT is positive, the RSI is above 80 and the CMF is above the signal line and it is a growth industry ( computer services ).bolinger bands are beginning to widen
Why we don't like is because it is in the daily cloud but almost out of it. watch out for fed talk and 200 is above on daily
Personally, I live offshore and I use MagicJack to make all my US phone calls.
Also, buy our book because it will help you understand our use of the indicators. This is the link, just click on it; www.amazon.com and please check out our Youtube channel: Pennies to Thousands were we mix ideas from the right and left part of the brain for trading.
INVN The Apple PlayMotley Fool has been touting a company that will profit from the Apple watch and Ioe. This is the company INVN. This stock has a lawsuit due to not sharing with investors that Apple was working with them. This is a speculative play but could play out if indeed they have the skeleton in Apple products. The way to play it is either stock at around 15.00 per share or a Jan 16 LEAPS option at 3.10 per contract. The break-even would be 18.10 by Jan 16th...can it get there? Well if it is supplying the chips for the watch and iPhone 6 it may very well get there soon...the lawsuit will be something to watch.
Time To Buy $YNDX? Despite the macro environment and a crumbling ruble, Yandex is starting to look like it may make a reversal. Pricing of the equity is only 4x this year's revenue, which might just make it your Russian rebound trade.
PRICE reached it's 52 week low today, so be careful. It will most likely re-test this 18.70 level before moving higher. If you're a buyer now, I would place a stop loss just below this level in case. A break above the 21.90 level and I would look to be adding more.
ACCUMULATION - This could potentially be a bottom, and with Yandex securing more and more infrastructure contracts in Russia and the upcoming changes to privacy laws, Russian based portfolios might be looking to add here. If it breaks above the December 9th high of accumulation, you're looking at new money entering the equity. I would start purchasing more going through that level.
MACD - Extremely oversold, looks like it's going to make a monster return, but danger still exists if it normalizes here,
CMF - Money's returning to the stock, but it's still bleeding. December 5th level is the one to watch. Any break above that and I'm looking to add.
GOOG Management Shakeup Will Send It LowerUndeniable that Google is one of the greatest companies out there, but the expanding multiple is being questioned, especially after the major shakeup in management. While I think any entry point would be great long term on this stock, the next few weeks will see this lower.
PRICE - $508 is the previous short term support, and I think with little to no new news planned from the company over the next couple of months, this moves towards that level. If it bounces off of it, I would watch the $560 level to see if the Oct. 31 resistance still holds.
ACCUMULATION - The past few weeks have seen this a lot of distribution. Most likely a number of active money managers are chasing returns at companies with higher risk and higher potential returns.
MACD - The MACD clearly looks exhausted and the cross down look like it's going to grind lower rather then have a sharp drop. This further supports the pricing action.