Stock Trends

Cyber stocks, defense gets a boost and banks ahead of earnings

Good morning,

This week has seen strong follow-through for stocks following last Friday’s pop. Perversely, not only have defense stocks gotten a boost, but this past weekend’s events seem to have finally given Treasuries a bid and greatly reduced the odds of another hike this year.

This week, we’ll look at:

• Cyber security stocks

• Defense stocks following the recent boost

• Banks ahead of earnings season

• Why this week’s energy bounce bears watching

• Why The Magnificent 7 looks more like The Mixed 7

• and more!

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Cyber stocks were already leading

Hot List stock Crowdstrike continues to soar

Crowdstrike Holdings is up 19% since being added to our Blue Chip Hot List on August 3. The stock is extended at 17% above its 50-DMA, but 52-week absolute and relative highs aren’t something I want to sell.

Palo Alto breaking out of 5-month base

PANW closed at a new all-time high yesterday and has broken out of a 5-month consolidation. Clear leader vs. the broad market as well.

Mind the gap on Akamai

Akamai is up more than 50% from its March lows and riding a clear uptrend line. However, I would note that it is showing a bearish momentum divergence as it approaches a large gap from May of last year. Sellers may be waiting.

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Defense stocks boosted by conflict