Chart of the Day: Is This Holding Out of the Woods Yet?
Spending is set to increase in the coming years in this important sector, which remains top of mind even if the economy slows.
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A day like Wednesday when every stock is rallying is a huge thrill and creates very positive energy. Look no further than the cybersecurity space, which participated to a large degree in the record-setting move.
S&P 500 stocks moved higher by 9.7%, but the First Trust Nasdaq Cybersecurity ETF CIBR, a holding in the TheStreet Pro Portfolio, jumped about 11% on good turnover. That pushed the CIBR above its 200-day moving average and just out of bear market territory.
By no means is the downtrend over though. The stock is still under the highs from March, and a series of lower highs and lower lows from the peak in February are the textbook definition of a downtrend. Further, MACD (moving average convergence/divergence) is still bearish, although it is making a nice move up and it appears the low from earlier this week at $54 may be solid.
Stochastics (momentum) is start to kick in as well, but as always, we are looking for a follow-through move to make sure Wednesday's outsized move is sustainable.
We like CIBR in TheStreet Pro Portfolio and rate it a Two, or "stockpile on pullbacks."
At the time of publication, TheStreet Pro Portfolio was long CIBR.
