Conclusion, Investment Implications, Strategy
The SPDR S&P Telecom ETF (XTL) is in the midst of a May 14th major uptrend (relative to its 200-day moving average), has been outperforming the benchmark S&P 500 on a quarterly basis since May 29th, and has been in a monthly trend of asset expansion since May 3rd. Moreover, the *related Sector SPDR Communication Services ETF (XLC) is on a May 28th buy/ovweweight signal acording to our SEAF Model. As long as these positive factors remain intact, this sets up a relatively low-risk opportunity to buy XTL and other related assets.
* The current makeup of the communications sector was created when the Global Industry Classification Standard updated the telecommunications sector in 2018 to include some digital media companies and social networks.
Editor’s Note: Of the 11 market sectors and 31 industry groups that we track, only five — Aerospace & Defense (XAR), Semiconductors (SOXX), Telecomm/Communication Services (XTL/XLC), Retail (XRT), and Utilities (XLU) — are currently outperforming the benchmark S&P 500 on a quarterly basis.
Current Sector & Industry Group Ideas
Table 1 below is also accessible via the Sector & Industry Group Ideas rectangle at the top of the Research Center.
Click the table to make it larger
This table also regularly appears in our weekly Keys To This Week: Sector & Industry Groups report published on Monday mornings.