Bullish on Cybersecurity

2017年6月27日

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/more-thoughts-dnc-hack
• the release of CIA Hacking Tools ("zero day" exploits etc.) wikileaks.org/ciav7p1/
• 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/news/fullstory_165465.html

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.

2017年6月27日

注释

Published today - Global ransomware attack causes turmoil bbc.com/news/technology-40416611

U.S. authorities are investigating a cyber intrusion affecting multiple nuclear power generation sites this year...code named "Nuclear 17." eenews.net/stories/1060056628

1 week ago - Unsecured Amazon server leaks details of 198 million American voters betanews.com/2017/06/19/largest-ever-leak-us-voter-data/