Systematic Trading Strategies and Next Level Trading Setups

Key Influences on Stock Performance – Bullish Patterns for Two Cybersecurity Stocks

Key Influences on Stock Performance – Bullish Patterns for Two Cybersecurity Stocks

Welcome to the Friday Chart Fix!

Trading is all about putting the odds in your favor. When picking stocks, we can improve our odds by staying on the right side of the market and focusing on names in leading sectors and industry groups. Today’s report starts with the market environment and a leading sector (tech). We then feature the leading uptrend in the Cybersecurity ETF and two names with bullish patterns.

  • Market, Sector and Industry Group Influence
  • Cybersecurity ETF in Leading Uptrend
  • Bullish Continuation Patterns for Two Cybersecurity Leaders

Recent Reports, Signals and Master ChartList

  • Breadth Lags, but Models Remain Bullish and Yield Spreads Narrow
  • Stock Setups in Defense, Materials and Biotechnology
  • Semis Hit Extreme as Industrials & Materials Hold Breakouts
  • Trend Trio Signals for Dow 30 Stocks and the 11 Sectors
  • Click here to take a trial and gain full access.

Market, Sector and Industry Group Influence

Many factors influence individual stock prices. Chief among these factors are the broad market environment, sector performance and industry group performance – in that order. Chartists should consider stocks during bull markets and stock alternatives during bear markets. There is clearly a bull market somewhere because SPY and QQQ hit new highs in October and remain well above their rising 200-day SMAs. Looking at sector performance, the Technology SPDR (XLK) is also in a leading uptrend and is the leading sector year-to-date (+24.91%). There is also broad strength within Technology because 73.55% of its stocks are above their 200-day EMAs. This is the second highest of the 11 sectors (XLU is tops with 100%!).

Looking for indicators with an edge? Check out the TIP Indicator-Edge Plugin for StockCharts ACP. Click here to learn more.

Cybersecurity ETF in Leading Uptrend

Within the technology sector, the Cybersecurity ETF (CIBR) is in a leading uptrend with price near a 52-week high and a rising relative performance line. Until these facts change, I expect this uptrend to continue. On the price chart, the trend is clearly up as CIBR hit 52-week highs from June to October and remains above the rising 40-week SMA. Broken resistance, the summer lows and 40-week SMA mark long-term support in the 70-72 area (blue shading). The bottom window shows the price-relative (CIBR/RSP ratio) turning up in late September 2023 and rising throughout 2025. This ratio rises when CIBR outperforms and falls when CIBR underperforms. The trend here favors relative strength because the price-relative is above its rising 40-week SMA.

Cup-with-Handle Pattern for Two Leaders

The market environment is bullish, technology is a leading sector and the Cybersecurity ETF sports a leading uptrend. This is an industry that warrants our attention for individual stock setups. Let’s look at two with classic bullish continuation patterns.

Popularized by William O’Neil of IBD, the cup-with-handle is a bullish continuation pattern. Here are some key characteristics. First, note that bullish continuation patterns form within uptrends and represent a consolidation within the uptrend. The cup forms with a pullback and recovery back to the prior highs. The handle forms with a shallower pullback or consolidation near the highs. Shallow pullbacks signal a decrease in selling pressure, which is a positive sign. The pattern highs mark rim resistance and overhead supply. A break above rim resistance signifies a material increase in buying pressure because demand overpowered supply. This breakout also signals the end of the consolidation phase and the resumption of the bigger uptrend.

The chart above shows CrowdStrike (CRWD) with the cup-with-handle forming above the rising 200-day SMA. The right side of the pattern looks like a surge-flag setup. CRWD surged from the 200-day to rim resistance and then consolidated within a tight range. With a surge on Thursday, the stock broke rim resistance and recorded a fresh 52-week high. The lower window shows the price-relative (CRWD/RSP ratio) rising since early September as CrowdStrike outperforms. Note that I featured this stock in late August as it tested the 200-day SMA with a classic correction.

The next chart shows Zscaler (ZS) forming a cup-with-handle well above the rising 200-day SMA. ZS is currently challenging rim resistance and a breakout would confirm the pattern. The lower window shows the ZS/RSP ratio turning up in early September as ZS resumed its relative strength uptrend. Note that I featured ZS in early September as it firmed near a key retracement.

See the Premium Page for more chart analysis and videos.

Recent Reports, Signals and Master ChartList

  • Breadth Lags, but Models Remain Bullish and Yield Spreads Narrow
  • Stock Setups in Defense, Materials and Biotechnology
  • Semis Hit Extreme as Industrials & Materials Hold Breakouts
  • Trend Trio Signals for Dow 30 Stocks and the 11 Sectors
  • Click here to take a trial and gain full access.

Bond ETF Hits New High – Gold Hit – GDX Triggers Stop – Moment of truth for Bitcoin

By

Today’s report starts with bonds because these safe haven assets are trending higher. Bonds have yet to start outperforming stocks, but traders should watch this relationship for clues on the risk appetite for stocks. Precious metals were rocked this week as gold, silver and their respective

Bond ETF Hits New High – Gold Hit – GDX Triggers Stop – Moment of truth for Bitcoin Read More »

Two Leading Cybersecurity Stocks – A Reversal within Aerospace – Housing Holds 200-day

By

Today’s report features five stock setups and two ETFs. Finding setups during earnings season is a challenge because I try to avoid stocks that are reporting within the next two weeks, and most stocks in the S&P 500 are reporting between now and month end. I am revisiting three prior

Two Leading Cybersecurity Stocks – A Reversal within Aerospace – Housing Holds 200-day Read More »

Gold/Silver Miners Extend Again – URA Ignores Physical Uranium – IBIT Holds Breakout Zone

By

Metals have been leading the financial markets with massive moves the eleven weeks. SPY (+4%), QQQ (+6.6%) and IWM (+14.10%) sport nice gains since August 1st. These gains, however, are dwarfed by Silver Miners SIL (+65%), Gold Miners GDX (+57.77%), Uranium URA +47.64%) and Silver SLV (+45%). The Gold SPDR (GLD) is in the middle

Gold/Silver Miners Extend Again – URA Ignores Physical Uranium – IBIT Holds Breakout Zone Read More »

QQQ Channels Higher – 5 Healthcare Leaders – Case Study on Trading Pullbacks (ARTY-MSFT)

By

Welcome to the Friday Chart Fix! Today’s report starts with the leading uptrend in QQQ. Large-caps tech stocks may seem ripe for a correction, but there are no signs of weakness on the price chart. Even though QQQ and the MAG7 are leading, there is strength in other areas with five healthcare stocks outperforming six of the MAG7. This report concludes with

QQQ Channels Higher – 5 Healthcare Leaders – Case Study on Trading Pullbacks (ARTY-MSFT) Read More »

Gold-Silver Miners Extend Further, Copper Hits Trend Mean, Key Moment for Bonds

By

Precious metals and gold-silver miners are outperforming tech and AI ETFs in 2025. Who would have thought? The chart below shows year-to-date performance for SPY, QQQ, some tech ETFs and some metals ETFs. SPY and QQQ are up 15 and 20 percent year-to-date, respectively. Even so, the lowly Copper ETF is outperforming these two with a

Gold-Silver Miners Extend Further, Copper Hits Trend Mean, Key Moment for Bonds Read More »

7 Stocks Representing Semiconductors, Cybersecurity, Consumer Staples and Healthcare

By

The stock market remains in bull mode with tech, utilities and industrials leading the chart. There is also a newcomer to the party as the Healthcare SPDR (XLV) broke out over the last two weeks. Today’s report covers two tech stocks, a leading consumer staple and four healthcare stocks. Symbols covered include: AVGO, CRWD, WMT, AMGN, INCY, COR and CAH

7 Stocks Representing Semiconductors, Cybersecurity, Consumer Staples and Healthcare Read More »

Trend Signals in Healthcare and Healthcare Stocks – 5 New Signals and 12 Leading Uptrends

By

Welcome to the Friday Chart Fix! Today’s report focuses on the Healthcare sector, which sprang to life this week as the Trend Composite turned positive. This signal, however, was not the first bullish signal. Healthcare showed signs of capitulation at the end of July, there was a double bottom breakout in late August and a bull flag

Trend Signals in Healthcare and Healthcare Stocks – 5 New Signals and 12 Leading Uptrends Read More »

Gold/Silver Miners Go Parabolic – Uranium ETFs Extend on Breakouts – Bitcoin Setup

By

Metals remain strong with gold, silver and their respective miners leading the charge. Industrial metals are also strong with copper, DBA and uranium extending on their late August breakouts. Even Bitcoin caught a bid this week with the government shutdown. Oil reacted differently with a rather sharp decline this past week. I would not read too much into the ramifications of the government shutdown

Gold/Silver Miners Go Parabolic – Uranium ETFs Extend on Breakouts – Bitcoin Setup Read More »

6 in Leading Groups: MAG7, Defense, Robotics, Crypto, Semiconductor, AI Data Center

By

Today’s report features six stocks in leading groups. These include the MAG7, Aerospace & Defense, Robotics & Automation, Crypto, Semis and AI Data Center. The market environment is currently bullish, but there are some sizable pockets of weakness because around a third of S&P 500 stocks are below their 200-day SMAs. Chartists can increase the odds of success by focusing on stocks
in leading uptrends and within leading groups.

6 in Leading Groups: MAG7, Defense, Robotics, Crypto, Semiconductor, AI Data Center Read More »

Trailing Stops for Tech ETFs – Rising Channels in SPY, QQQ and XLF – XLV and ITB Set Up

By

The weight of the evidence remains bullish for stocks with large-caps and tech stocks leading the way. Utilities, defense and big banks are also strong. Small-caps and mid-caps are more mixed. We could be in for some volatility as the headlines flow from Washington DC. What else is new? We could also be in for a rough ride because October is

Trailing Stops for Tech ETFs – Rising Channels in SPY, QQQ and XLF – XLV and ITB Set Up Read More »

102 Days above 50-day – New Lows – Tech Power – Commodity Bulls – Oil Gets Interesting

By

SPY reached a milestone this week as it held above its 50-day SMA for more than 100 days, which was the seventh such occurrence since 2000. Even though SPY is 2.2% above its 50-day, only half of its components are above their 50-day SMAs and new lows are expanding. However, a correction in SPY could remain elusive until tech stocks and the MAG7 buckle. Elsewhere, it is a bull market in commodities and even energy is starting turn up.

102 Days above 50-day – New Lows – Tech Power – Commodity Bulls – Oil Gets Interesting Read More »

Gold/Silver Miners Go Parabolic – Copper Surges – Oil Sets Up – 4 Energy ETFs to Watch

By

Commodities are still an option, even in the AI age. Precious metals and their respective miners continue to lead the market with big moves since early August. Industrial metals are strong overall with copper catching a big bid this week. Energy is also showing promise as oil firms above its breakout zone and looks poised for a breakout. Today’s report will cover metals and oil. Note that I covered crypto and uranium on Tuesday. Symbols covered: GLD, SLV, GDX, SIL, CPER, DBB, USO, XLE, OIH, XOP, FCG.

Gold/Silver Miners Go Parabolic – Copper Surges – Oil Sets Up – 4 Energy ETFs to Watch Read More »

A Healthcare Stock at New Highs – A Defense Stock Breakout – 4 Utilities with Breakouts

By

Today’s report features two stocks with leading uptrends, two stocks with short-term breakouts and four utility stocks with breakouts. Most of these stocks come from strong areas of the stock market: software, defense and utilities. Quest Diagnostics is part of the Healthcare sector, which is lagging the broader market. Mercado Libre is an ecommerce giant in Latin America. Today’s stocks are: ADSK, DGX, MELI, DRS, AEE, CNP, ETR and EVRG.

A Healthcare Stock at New Highs – A Defense Stock Breakout – 4 Utilities with Breakouts Read More »

Banks Lead Finance – Defense Leads Industrials – Utes – Uranium Surges – IBIT Dips

By

The weight of the evidence remains bullish for stocks, but this is not a bull market that lifts all boats. Strength is concentrated in three sectors: Technology, Consumer Discretionary and Communication Services. Outside of these sectors, I am also seeing leadership in precious metals, industrial metals, clean energy, aerospace-defense, big banks and telecom. Today’s report will show some trends and setups for ETFs

Banks Lead Finance – Defense Leads Industrials – Utes – Uranium Surges – IBIT Dips Read More »

Scroll to Top