My Stock Winners

Telecommunications (TTH)
Bullish
Sector trading above its…
20-day Moving Average: YES
50-day Moving Average: YES
100-day Moving Average: YES

Sentiment:Pessimism continues to dominate the sentiment backdrop of the telecomm sector. The composite Schaeffer’s put/call open interest ratio for the sector currently rests at 0.80, which is higher than 88 percent of the readings taken during the past 52 weeks. What’s more, of the 166 analyst rating on the components of the sector, only 34 percent come in at a “buy.” This bearish configuration leaves ample room for potential downgrades.

Outlook:The Telecommunications HOLDRS Trust (TTH ? 36.70) rallied with the rest of the market last week, gaining more than two percent as it outpaced the SPY. The ETF bounced off support at its ascending 20-day moving average and also found support at its 10-day trendline as it tagged a new annual high on Friday. As pessimistic sentiment toward the sector unwinds, the ETF should enjoy further technical upside as fresh buying power moves in to lift the shares.

Utilities (UTH)
Bullish
Sector trading above its…
20-day Moving Average: YES
50-day Moving Average: YES
100-day Moving Average: YES

Sentiment:Skepticism is extremely heavy in the sentiment backdrop of the utilities sector. Wall Street has placed some heavy bets against the group as less than 26 percent of the 184 analyst ranking on the components of the utilities sector come in at a “buy.” This bearish configuration leaves ample room for potential upgrades. Furthermore, the number of Utilities HOLDRS Trust (UTH ? 133.15) shares sold short increased by two percent in January to 2.9 million. This accumulation of bearish bets is more than 15 times the ETF’s average daily trading volume.

Outlook: Technically speaking, the ETF continued to claw its way higher last week, closing the week with a gain. The trust continues to battle resistance in the 133.50 region, which capped the shares from the beginning of December through the start of January. In trading last week, the trust briefly popped above this resistance area to notch a high of 134.36.