Wanna Cyber for Real This Time?

It sure seemed inevitable that cybersecurity stocks were the wave of the future, what with the constant barrage of headlines regarding major securely breaches across the globe. Indeed, the Equifax news of a breach affecting possibly 143 million customers is surely yet another shock this morning, as EFX's stock is down more than 15% as I write this. 

But just any FEYE or SPLK bull from a few years back, and you will hear a painful tale of heartbreak on the way down, as the market simply was not yet ready to reward the cybersecurity thesis. 

Fast-forward to the middle portion of this summer, however, and a plethora of holdings in the HACK ETF for the cybersecurity stocks began to notably outperform most tech peers, not to mention to the broad market as well. 

On the HACK daily chart, below, as long as price can now hold back over the 50-day moving average, bulls should have a good chance to spill over the summer strength into autumn. 

It is also worth noting that some HACK names like QLYS SPLK have been on an absolute tear, while laggards like PANW are finally waking up and improving. 

Overall, the HACK bull thesis has been a tease for a while now. But given the recent outperformance it certainly bears watching to see more and more individual names in the sector firm up and eventually follow the leaders higher for a broad-based rally to strengthen the bull case.