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Good morning!
With the markets looking to take a pause from the red-hot uptrend we have seen lately, I think it makes a lot of sense to hunt for smaller stocks that have excellent potential right now.
Last Monday was a great example of this.
If you remember, I introduced you to a brand-new stock that I thought was a perfect-looking “bottom bounce” play.
That stock went on to gain over 90% within 2 hours after the market opened.
We had a front-row seat to one of the largest moves in the entire market, and I hope we get to do it again today!
Today, I want to share with you what I see as a very similar opportunity.
Go to your favorite platform and pull up Hub Cyber Security (HUBC) right now, and I’ll show you exactly why I think it could be ready to make a big move soon.
First of all, cyber security stocks have been on fire lately.
Just look at the price charts of leaders like PANW, FTNT, and CRWD, or even my favorite way to trade the sector, a cleverly named ETF called “HACK.”
When the whole sector is hot, I think it increases your odds of success.
HUBC is an excellent idea to consider right now in this sector.
It is a smaller stock that has shown some incredible moves lately, and I think it could be setting up once again.
If you look at the chart below over the last couple of months, you’ll see that I circled the three recent times that HUBC made a breakout over the 20-hour moving average (which is my favorite short-term trading indicator.)
The first time, it led to an incredible 200%+ move over a few days.
After that, we had a “fakeout” that attempted to break out but then fizzled.
Right now, we are seeing the early stages of another attempt at a breakout…
You can see that the stock had a nice 20% spike on good volume around a week ago and has switched from a purple downtrend to “GO” signals and a strong uptrend.
Looking at price levels, you probably know that I like to use closing prices either under the 20-hour moving average or below the recent “GO” signal (around $.75) as spots where I would look to protect my capital with a stop loss.
When I am betting on an uptrend to work, it needs to happen pretty quickly, or else I want to go to the sidelines.
If this idea does start to work out, I would keep an eye on the $1 level, which always seems to be a line of resistance (or support) for small stocks.
That is about 20% higher than current levels.
After that, I would pay attention to the $1.30 range, which is where HUBC had good support during the last big rally.
That is around 60% higher than current levels.
As you can see, I think some nice upside moves are possible, and I would try to keep a very conservative downside if it didn’t work out.
Of course, I’ll never try to tell you what to do with a trade, but when I trade smaller stocks like this, I always want to use what I call “2 to 1” risk/reward.
That means if I am willing to make 20% on a trade, I want to set my orders there but also make sure I don’t lose more than 10% if it doesn’t work out.
With fast-moving stocks, it is really important to identify what levels you want to buy and sell at and make sure you’re ready to react quickly.
In fact, I like to set up my sell orders as soon as I open a new trade. That way, I won’t miss anything if a big move happens and I am away from my desk.
I think HUBC has all the ingredients I look for in a great reversal setup.
Things can happen very quickly, so make sure you take the time right now to look into it, even before the market opens.
As you’re doing your own homework on this, here are some notes I put together on my own.
Hub Cyber Security (HUBC) is a leading cybersecurity company specializing in managed services, compliance, and confidential computing.
The Israel-based company was founded in 2017 by former members of the elite intelligence units of the Israeli Defense Forces.
Today, it operates in more than 30 countries and has protected information for Fortune 500 companies, government agencies, startups, and more.
HUBC’s core innovations are in “confidential computing,” a cybersecurity technology focused on protecting data while it’s in use.
Key in this area is its HUB Secure File Vault which is “built for organizations that cannot afford to lose their crown jewels.”
HUB Secure File Vault
The Secure File Vault is a “supercharged” Managed File Transfer (MFT) system that uses hardware-based secure enclaves.
According to the company, “[t]hese enclaves create controlled and isolated computing environments where data and applications are processed securely, shielded from unauthorized access, malicious actors, vulnerabilities, and network risks.”
HUBC says that these systems can secure information even when an entire organization’s infrastructure has been compromised, making them a kind of last refuge for critically important information.
Another of HUBC’s important offerings is a service called HUB Guard, which is “a cybersecurity platform that continuously monitors and protects your network and infrastructure. It offers real-time threat protection, ransomware resilience assessments, risk management, and incident response plans.”
This includes a management interface that “allows security professionals to track metrics, identify vulnerabilities, and configure security settings . . . [w]ith event logging and analytics.”
It also includes “detailed cyber threat simulations” that involve real-time external probing.
If a data breach does occur, HUB Guard’s instant incident response kicks in, “ensuring minimal damage and maximum recovery.”
A third core HUBC offering is Attack Surface Management (ASM), which “provides you with insights into your genuine attack surface, encompassing the digital assets you acknowledge, those you might not be aware of, and any potentially harmful or unauthorized assets.”
ASM is a kind of digital reconnaissance. It identifies “all outward-facing digital resources, including domains, IP addresses, web interfaces, cloud storage, and beyond” and updates on a weekly basis.
Lastly, the company offers Governance, Risk, & Compliance (GRC) consulting.
As you might imagine, one thing the government takes very seriously is data breaches and protecting consumer information.
We’ve all heard of major companies enduring leaks that sometimes cover millions of identities or passwords. These leaks result in costly class-action lawsuits, reputational harm, and—of course—more government regulation.
All of HUBC’s services help maintain compliance with these regulations, but GRC is dedicated to analysis.
I want to address briefly a lawsuit from the hedge fund Dominion Capital against HUBC.
The lawsuit claims that the company has a past-due debt of approximately $3.1 million and “lacks economic feasibility.”
HUBC responded forcefully to these allegations in April, calling them “frivolous” and “entirely without merit” and noting that that same month, it had announced it “recently raised funds exceeding $8 million and acquired the shares of QPOINT, a company with annual revenues surpassing $26 million.”
I’ll have more to say about this important company as the week goes on, including important recent developments and customer acquisitions, so stay tuned…
Spend time right now doing your own research on the stock, and of course, always approach your trading in a responsible manner. Trading is very risky, and nothing is ever guaranteed, so never trade with more than you can afford to lose. Please read the full disclaimer at the bottom of this email as well so you are aware of additional risks and considerations. Always have a well-thought-out game plan that takes your personal risk tolerance into consideration.
Bottom line: If the overall market rally stalls out over the next few days, like I think it will, then it makes a lot of sense to try to identify oversold smaller stocks that have big potential.
Right now, I think HUBC presents an amazing opportunity.
It is in one of the hottest sectors of the entire market, and the chart setup is irresistible to me right now.
Make sure you are keeping a close eye on HUBC all week long!
To Your Success,
Jeff Bishop
P.S. Make sure you join me and over 1000 traders in the Market Master’s trading room today for live trading signals and education. You can access it at no cost right now.
*Just so you know, what you’re reading is curated content for which we have received a monetary fee (detailed below) to create and distribute. Let’s be clear that investing can be quite the roller coaster as stock prices can have wild swings up and down, so consider those crucial risks before you ever consider trading anything we discuss. Make sure you check out our full disclosure down below for the details on how we were paid, the risks, and why these results aren’t what you’d call “typical.”
Just a quick heads up about this ad you’re reading—as we’ve said, even though we like the company referenced above, and all the facts we discussed above are true to the best of our knowledge, we are running a business here. To distribute this information and help offset the costs of maintaining our large digital audience, in advance of writing the content above, we received sixty thousand dollars (cash) from Shore Thing Media for advertising HUB Cyber Security Ltd for a five day marketing program starting on June 17, 2024. This amount was paid by someone else not connected to HUB Cyber Security Ltd. It might be obvious, but whoever paid for this might own shares and is likely looking to sell some or all of them at any time after we send out this information, which might affect the stock price. We may also buy or sell shares in the company at some point in the future, although neither RagingBull nor its owners own any shares of the company at this time. Also, keep in mind that due to the sheer size of our audience, if even a small percentage of people decide they want to buy this stock, it could potentially boost interest enough to hike up those share prices and cause a temporary spike, and the opposite is possible as our program ends, though that is not always the case.
Now, diving right into HUB Cyber Security Ltd might sound exciting. But remember, it’s like venturing into the wilderness—be aware that there’s exceptional risk involved in trading. This isn’t small potatoes we’re talking about; you could lose every dime you put in, so always carefully think about what you’re doing. That’s why they call this trading, after all. We’re shining a light on the good stuff about the company here, but it’s on you to do your homework, make your own calls, and determine a plan for your own trading, hopefully with the help of your professional 1nvestment advis0r.
Oh, that brings us to another crucial point—we’re not here to tell you (or even recommend) what you should do with your hard-earned money. We’re simply sharing our non-expert thoughts by highlighting some companies we like that could use some help telling their story to more people. We’re obviously biased in our writing. We’re not here to dig into anything that may be negative about the company; this is advertising, after all! Also, keep in mind that if we make some predictions about the future, these are technically known as “forward-L00king statements” under the securities acts, so take those with a grain of salt. As with all forecasts, they’re not set in stone, often wrong, and we certainly can’t know where the Company’s earnings, business, or share price will be tomorrow or a year from now.
Everything you read from us is all for your education, information, and possible entertainment. While we believe the info is reliable and accurate, we can’t wear a cape and guarantee it. Before you jump into anything, make sure to talk it over with a pro—someone you trust who’s licensed to give you real advice. To be clear,
Neither Raging Bull nor its owners, employees, or independent contractors are registered as a secur1ties br0ker-dealer, br0ker, 1nvestment advis0r (IA), or IA rep’s with the SEC, any state securities regulat0ry authority, or any self-regulat0ry organization.
So, that’s the scoop! If you’re intrigued and want to learn more about the companies we talk about, hit up the SEC’s website to dig into their filings and see the full picture.