HACK Attack:
There has been a bifurcation in action among the cybersecurity stocks after REPORTING earnings this quarter. Many have disappointed, or at least recorded weak reactions, including one of my favorites in FTNT. On 5/8 the leader gapped down to the tune of 8% and since it has been having issues with the upside gap fill from 5/7 session. On the positive side it has formed a bull flag and a break above 106 could carry a measured move to 119. OKTA was shelled Wednesday by 16% after an ill received number, but should settle in here as it has filled in a gap from 4/28. PANW dropped 7% on 5/21 and there is nothing to do here until it can CLOSE above a double bottom with handle trigger of 195.52. Best in breed CRWD, all four of these names are all top 10 components, REPORTS next Tuesday after the CLOSE and its last 2 reactions fell by 6 and 5% respectively. This has broken above the 450 bull flag trigger would could see a measured move to 540. Interesting that two top ten holdings in the ETF are actual defense names, many think pure play software, and the MONTHLY chart on NOC is carving out a cup base pivot of 534.16 in a base dating back to Q4 ’22. Respect the comfort being given at the 50 MONTH SMA here which also occurred in 2019-2021. GD needs a CLOSE above 283 on the WEEKLY to start rounding out the right side of a potential cup base.