Don't Be Insecure

Oftentimes, in today's day and age of social media fused with finance, it is easy to fall into cliques and group-think which can diminish your own unique approach to markets.

To be sure, adopting a few popular trading symbols into your repertoire of watchlist ideas is certainly an instructive way to use social media to your advantage, especially if said tickers are sporting sound technicals to support any growth/bull thesis. However, simply throwing down the proverbial gang signs for a select few tickers due to a given clique embracing them, while eschewing a whole host of others flying well under-the-radar, is counter-productive and brings out the worst in social finance. 

Thus, with NFLX earnings tonight, followed by TEAM tomorrow, we have two fairly popular stocks on social finance, both of which have rightly earnings their beloved reputation over the years (although NFLX still has its fair share of skeptics, mostly from macro and fundamentals backgrounds). 

SecureWorks (SCWX) is an underrated cybersecurity firm. It is heavily-shorted and could easily be a buyout target in what has been a strong bull run for HACK ETF firms. Despite its sizable short position, the stock has been pulling back in an orderly manner, as seen on its weekly chart, below. 

SCWX may not get the accolades nor the tribal worship than many other tickers do these days on social media, but it sure seems right up my alley as a name to watch off the recent dip. Yesterday saw the name surge higher with good buy volume, and I want to see if we get a move over $20 anytime soon to confirm newfound momentum. 

So much of trading and indeed most forms of speculation hinges on your ability at various times to work in dark corners without regard to what the "cool kids" are doing and thinking. We must always be confident enough to embrace overlooked tickers in hot sectors, or even overlooked sectors at times.

But SCWX is clearly in a hot sector and, despite being quiet since February, looks ripe for a move into the heart of spring.