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Sony Hack Puts Spotlight on Cybersecurity Stocks

By The Chartman FOXBusiness

After the selloff of the past few weeks, the market was very oversold, so the bounce wasn’t a complete surprise. Of course, the severity of the bounce WAS a surprise – at least to me – and it’s tough to tell what happens next. 

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The most likely scenario is that the Dow works its way back to resistance. But, if that happens we’ll have the reverse situation of a market becoming very overbought, and primed for at least some sideways action at old highs.

In any event, now’s a good time to just watch and react rather than guess.

I’ve suffered with my oil stock holdings, but perhaps there’s a glimmer of light. While oil itself keeps dropping, oil stocks have started bouncing. Exxon Mobil (XOM) is a great example, and it looks like a double-bottom has been put in. It’s a little overbought right now, so wait for at least a small pullback before buying.

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If the Sony (SNE) situation reminded us of anything, it’s that cybersecurity is a growth industry. There are a number of companies involved in that arena, and Cisco (CSCO) is a good one. I think the stock has a ton of upside.

Back next week to see if Santa brought us gifts…or coal.

What do you think?

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