Long Cyber Security

HACK is a new Cyber Security ETF that started in November 2014.
It has attracted much attention and we can see below that it moved up by consecutive high volume buying waves and pulled back on lower volume. The 50MA has been a good guide.

[ATTACH=CONFIG]30862[/ATTACH]

In this video I show how to evaluate this sector, using the sector MF.

[url]https://www.youtube.com/watch?v=cPzIh5bl1Ik[/url]

Among interesting stocks in this sector, I pointed AVG, PANW and FEYE. Most are somehow extended and display slightly negative EV patterns.

Below are the Tables for AVG, which could be an interesting buy on a breakout. I still however suspect that the sector will "take a rest" and hence will offer better buying opportunities in maybe one or two weeks.

[ATTACH=CONFIG]30866[/ATTACH]

[ATTACH=CONFIG]30861[/ATTACH]

One major issue is that the SUpply level is very high, simply because the average profit is about 17%. The left side of the Volume Histogram shows 30% gains, which is a very strong incentive for people to sell shares and if the sector "takes a rest", I suspect that profit taking will be the rule.


[ATTACH=CONFIG]30863[/ATTACH]

[ATTACH=CONFIG]30865[/ATTACH]

The sensitivity analysis tells that it is OK to buy between 28.4 and 28.69, but I would remain below the 5MA + 2.3%, which is below $28.47

[ATTACH=CONFIG]30864[/ATTACH]

Here is an update on the HACK long idea that has not triggered yet.

HACK is now back down to its 50MA.

[ATTACH=CONFIG]31023[/ATTACH]

Its supply level is stable.

[ATTACH=CONFIG]31028[/ATTACH]

The Breakout Calculator indicates that Hack can be bought on a pullback to about $30.54

[ATTACH=CONFIG]31029[/ATTACH]

[ATTACH=CONFIG]31026[/ATTACH]

The sector MF however is still negative and does not show that a bounce will occur today. A sector buy signal will be issued when the MF will be crossing above the average line shown in black.

[ATTACH=CONFIG]31025[/ATTACH]

Except for VRSN and BLOX, two components of the HACK ETF, most other components display very poor pyramid data. Hence, more patience is required.

[ATTACH=CONFIG]31027[/ATTACH][ATTACH=CONFIG]31031[/ATTACH]

[ATTACH=CONFIG]31024[/ATTACH][ATTACH=CONFIG]31030[/ATTACH]

Below is a video about the Software security

[url]https://www.youtube.com/watch?v=46ZnBCELqg0[/url]