Sector Watch - Telecommunications
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, down from its peak, but still higher than 88 percent of the readings taken during the past 52 weeks. What’s more, of the 164 analyst rating on the components of the sector, only 37.2 percent from in at a “buy.” This bearish configuration leaves ample room for potential downgrades.
Outlook:The Telecommunications HOLDRS Trust (TTH – 35.66) successfully bounced off support at its rising 100-day moving average to reclaim the support of both its 20-day and 50-day moving averages. The exchange-traded fund (ETF) continued its uptrend last week, tagging a fresh annual high.
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