Global X Cybersecurity ETFComparing the Global X Cybersecurity ETF versus the S&P 500 and the NASDAQ indexes since 7/31/2021.
BUG trade ideas
$BUG Good Cybersecurity BarometerIf you like the cyber security space, you can trade BUG or use it as a barometer as it's comprised of names such as PANW , CROWD ,ZS, etc.
I like this fund because... it's cheap. PANW is trading at almost $600 , options aren't cheap (JUN 620c is 28.4 or $2,840 a contract).
However if you wanted to go long on BUG JUN $32 calls they are trading at about 1.10 ($110) !
Technically, BUG has broken down from the upward channel and is currently trading below the weekly 30day moving average.
Bullish Scenario : Price breaks back into the upward channel , in which case an idea would to be go long with an initial PT of $38
Bearish Scenario : Price rejects at the channel / 30day moving average and we see the next leg down with an initial PT of $25
Of course, with each scenario one could go short / long in one of the individual stock names for a higher R/R trade
$BUG Long The oscillators show a long entry.
Momentum - RSI crosses the 50 upwards.
Trend - Stochastic is in an upward trend.
Stochastic strategy - over 80% success in the ETF.
Global X Cybersecurity ETFThere is an increased need for protection against cyber-attacks.
Below are some statistics from the 2021 Cybersecurity Statistics Report via PreyProject.
- 70% of organizations say that they believe their security risk increased significantly in 2017. (Ponemon Institute)
- By 2020, the number of passwords used by humans and machines worldwide is estimated to grow to 300 billion. (SC Media)
- 43 percent of cyber attacks are aimed at small businesses. (Small Business Trends)
- 230,000 new malware samples are produced every day — and this is predicted to only keep growing. (Panda Security)
- 90% of hackers cover their tracks by using encryption. (Vanson Bourne)
- It takes most companies over six months, or around 197 days to detect a data breach. (ZD Net)
- Windows is the most targeted platform by hackers; Android is number two. (Computer World)
- There were over 3 million crypto-jacking hits between January and May 2018. (Quick Heal)
- The number of mobile crypto-jacking malware variants grew from 8 variants in 2017 to 25 variants by May 2018 – making a 3x increase. (Quick Heal)
- F-Secure’s 2019 report showed that China, the US, Russia, and Germany were the countries whose IP addresses were the most attacked
- Iran,Tunisia, and Belarus were ranked as the least cyber-safe countries while Finland, Japan, Denmark, and the UK were identified as the most cyber-safe. (Comparitech)
- Almost all malware arrives on computers via email, in fact, this was found true in 94% of cases. (Verizon)
A review of the Global X Cybersecurity ETF, notes the price trading close to an overhead zone, which may be breached upon continued strong price action and an increase in volume.
Medium term traders want to be buyers above $30.25, using a stop of $27.40 and a target of $37-38.
$BUG - I need inI will get into commons.
I like the ascending wedge, the cinched MACD, the stochastic and ATR.
BUG - CYBERSECURITY ETF - Up 140% post MarchA relatively new ETF, BUG provides exposure to companies involved in the development and management of security protocols preventing intrusion and attacks to systems, networks, applications, computers, and mobile devices. Eligible securities are those in the emerging and developed countries and are selected based on the revenue which must be at least 50% generated from cybersecurity activities. (Source and more info at: www.etf.com)
From a TA perspective it has had a nice steady run post March and would seem to be in a pretty hot sector with global reports of state level hacking and company intrusions on the rise. RSI shows there is still some value in it after its most recent pullback and its steep incline would indicate interest is growing. Would be nice to see the OBV in positive territory above its 14 day moving average for confirmation. Could be worth a look for a longer term buy and hold.
BUG: Double Top Double Top
Pros:
Descending volume during formation
RS flat and below 0
R/R ratio above 5
ATR flat
Cons:
PPS above 50MA and 200MA
200MA ascending
250RSI above 50
If confirmed:
PT = 17.92$
Cybersecurity massive volume!On a minute chart, there was a buy trade for 266,069 shares; creating the biggest volume spike in this ETF's short history. (check volume candles on chart).
As we see the volume spike on a specific minute (10:48am ET), we can assume the trade was made by probably 1 institution/person. This means this individual created a position of 5 million dollars with a single trade into BUG.
10sma towards the $19 range shows short-term support.
Top-10 Portfolio holdings by weight:
OKTA (8.4%)
FTNT (8%)
ZS (6.93%)
Trend Micro Inc (6.09%)
CHKP (5.69%)
NLOK (5.63%)
QLYS (5.61%)
PANW (5.23%)
AVST (4.89%)
PFPT (4.79%)
Total % weight: 61.26%
