Potential cybersecurity solutions are rarer than the numerous hackers, or and self-designated experts on computer security. It's one reason we're aware of protecting our passwords or log-in credentials, because other than perhaps your CPA, nobody generally should have access to those. I was stunned just today to learn that one popular online brokerage asks for such information. No responsible institution should ever inquire of that kind of personal info, and for sure that's especially when it involves money and financial sites.

So, while the Pipeline hacker/ransomware shutdown gets 'top headline billing' and won't be resolved ('mostly they say') until the end of the week, there really needs to be more awareness of these risks. On a personal basis, Apple Mac OS systems are not perfect, but far more secure than the oft-patched Window systems. On a corporate basis there's more variability, part of the problem is there is not a 'one size fits all' Enterprise software security solution. We made a bit with CheckPoint (CHKP) some years ago, but now there are so many, as well as risk of responsibility if their protections are inadequate, that we don't.

Meanwhile, more big technology stocks decline, and is emblematic of concern by us for an April-May shakeout, but also the obvious limitations of 'rotational assistance' from assorted infrastructure and Oil / Energy issues to offset that, as they have done for some time allowing the 'illusion of strength' for the S&P.

So the latest story about the cyber-hacking is that it was all about money, and even perhaps without knowledge they attacked the largest pipeline in the U.S. (as some are suggesting the hackers are Russian, but not a Moscow-ordered attack). It appears to be a huge 'ransomware' attack, but there's no advice as yet from The While House as to how Colonial should respond (probably that's a blind-eye being given to pay-off the hackers, vs. the gasoline shortage that's possible late this week in the Northeast, almost regardless of resolution).

Executive Summary

• Internal market weakness becomes more evident as techs break further, so now (after the recent high) you have a couple institutional downgrades especially on Google (not poorly timed as we were very optimistic until a 'sell the news' spot days ago), and Amazon (with which we also agreed as vulnerable good bit higher than today), it's still tough to pick-and-chose breaks, but this has all been in our ideal time-frame for stocks to break (GOOGL, AMZN).

• Backup strategies related to protecting against cyber-attacks is crucial but difficult, especially as there are a number of ransomware groups out there and some operate in certain Eastern European countries which won't take reasonably appropriate action to shut them down (which they could).

• If it can be proven that these are 'state-sponsored actors' doing the cyber attacks, we (and Europe) can go after countries that harbor blackmailers, which interferes with daily life (gasoline availability is not the only issue, just one that brings the arcane world of hacking software to attention).

• This Administration proclaims a tougher stance with Russia, well a cyber hacking mutual Agreement would be one way to move forward, so far we hear calming words of investigation from Washington, but no action.

• Also it is possible Washington really doesn't know the culprits, and that's more worrisome, given the implications of attacking the electric grid, etc.

• Speaking of, if there were a huge attack on electric utilities, imagine what that says about EV vs. ICE automobiles, at least here in Florida virtually all gas stations have power generators, because of hurricane outage fear, so people can still fuel gasoline powered cars if the power's out (as it can be for days or weeks after a hurricane).

• Facebook's response today, to over 40 State Attorney Generals asking Facebook to cancel plans to introduce a version of Instagram aimed at a youth market (we mean sub-teens, not the present market).. the response was sort of pathetic, ignoring the idea of abandoning it and instead merely saying their teams would work to ensure it was psychology safe or so on (FB).

• The overall pattern continues as outlined, correcting overpriced big-tech stocks primarily, as momentum names fell notably, with rebounds fairly limited (especially as lot of those stocks were in multi-week distribution or 'rangebound' patterns), and generally they have more work to go.

• There's no strong opinion about crypto or Dog-e-Coin, which sold-off then got erratic both during Elon's SNL appearance and it's shaky today, from a psychological standpoint once everyone is excited about something, it is generally overpriced and the 'game already played' (DOGE-X).

• That's not to say we won't get another huge crypto move, but some very aggressive players will like their wounds, while the sales crowds keep up a steady promotional drone, but some of those coins are multilevel based products, with many of the players not even aware of those structures.

• COVID mortality has sharply decline in the US and UK (even in China), but not so in some other areas, case levels are likely underestimated widely, nevertheless many factors look better for 'some' travel this Summer (but I personally may have to stay close to home due to aspects of recovering, that's fine...I often go to IFA -tech show where I embraced AMD- in Berlin (AMD), and it's live again, but so far Americans aren't allowed to visit Germany).

• By the way, in-case you hadn't heard: Japan's 'regional governors' now are demanding Tokyo declare a National Emergency due to the return of a COVID influx that was presumed to have dissipated, COVID obviously is facing an Olympian hurtle in terms of a unified team spirit opposing it.

• By the way for those who talk about Summer rallies and Memorial Day of course in a few weeks, they're right, with a caveat, the best such rallies in fact occur 'if' the market has been clobbered in May, so it's got nothing to do with 'Summer', but lots to do with how hard big-caps get hit first.

• If so it's then oversold and I have already outlined that 'if' we can get what we are getting, then it sets the stage for a staggered move back up.

Stay tuned on that possible late May / June performance. And yes a number of years we've had partially weak Junes, rallies into July, and then dog days of August, during which I'm usually in Europe (probably not this year given all the challenges you know about). Perhaps that's a preliminary market roadmap (subject to change), while recalling that straight lines exist on maps while real life roads have more twists and turns and surprises (not an allusion to Elon's 'auto-pilots') that weren't on the Google or Apple maps (AAPL).