The communications services sector (XLC) is breaking higher, after 10 days of consolidating its recent gains. Stocks in the group were active on Monday despite the financial media’s dire drumbeat. This morning they are at it again, whipping up concern over everything they think we should be afraid of while ignoring price action. We noted yesterday, institutions were buying the lows, as TICK cumulative kept rising during the evening session.
Summary
My two cents? Turn the news off.
Communications Services Sector
When institutions start selling it will be obvious. Until then, relative strength is obvious. Price action is rising, with the 21/50d moving averages bullish and supportive.
Netflix (NFLX), Alphabet/Google (GOOGL), and Facebook (FB) closed in the upper half of their respective daily ranges. We’ll look for more upside today and sell some into strength on any signs of profit-taking. Day trades are still in effect, as we navigate geopolitical tensions.
| SYMBOL | NAME | SECTOR | CHG | % CHG | VOLUME |
|---|---|---|---|---|---|
| ATVI | ATVI – Activision Blizzard Inc. | Communication Services | 1.07 | 1.82 | 4566287 |
| EA | EA – Electronic Arts, Inc. | Communication Services | 1.58 | 1.47 | 2933535 |
| FB | FB – Facebook, Inc. | Communication Services | 3.93 | 1.88 | 16303699 |
| GOOG | GOOG – Alphabet Inc. – Class C | Communication Services | 33.55 | 2.47 | 1597188 |
| GOOGL | GOOGL – Alphabet Inc. | Communication Services | 36.29 | 2.67 | 2260651 |
| NFLX | NFLX – Netflix, Inc. | Communication Services | 9.93 | 3.05 | 5658980 |
| VIAC | VIAC – ViacomCBS Inc | Communication Services | 0.61 | 1.47 | 5699121 |
The computer gaming/software stocks were very active Monday as well. Look for this group to remain active today as Take-Two (TTWO) and Activision (ATVI) closed near the highs of the day.
Sector Strength
Healthcare stocks found buyers on the pullback at the 21d. Cyclical stocks in the financials (XLF) and industrials (XLI) sectors also bounced, while the materials sector (XLB) experienced more profit-taking. We’ll steer clear of the latter for the time being.
S&P futures are higher. Nasdaq futures outperformed on Monday, thanks to the big cap “FAANNG “stocks. Look for that performance to continue. Gold is higher, while bond yields and crude are flat.
Join us today in the trading room for our LIVESTREAM broadcast
during market hours, as we navigate the current environment. Watch, listen and trade from 9:20 AM to 4:15 PM Monday through Friday.
Happy Trading,
Vinny
Want to become a member? Check details here:
Disclaimer: Do your Own Research
Our content is intended to be used and must be used for informational purposes only. It is very important to do your own analysis before making any investment based on your own personal circumstances. You should take independent financial advice from a professional investment advisor in connection with, or independently research and verify, any information that you find on our Website and wish to rely upon, whether for the purpose of making an investment decision or otherwise. Trades and or positions listed and taken from the watchlist are my own and should not be considered “advice” to enter any particular position or asset.
Investment Warnings
We would like to draw your attention to the following important investment warnings. The value of shares and investments and the income derived from them can go down as well as up; Investors may not get back the amount they invested – losing one’s shirt is a real risk; past performance is not a guide to future performance.
Live Sessions
Live broadcasts are educational in their content. Proper risk management is considered on every trade or asset mentioned.
*** Stocks highlighted are for information purposes only and should not be considered as advice to purchase or to sell mentioned securities.
As always, the use of technical and fundamental analysis is encouraged in order to fine-tune entry and exit points to average seasonal trends.
These mentions are stocks that we may or may not decide to trade as outlined in the watchlist. Always use a stop.
