{"id":218895,"date":"2025-02-20T09:16:23","date_gmt":"2025-02-20T14:16:23","guid":{"rendered":"https:\/\/ibkrcampus.com\/campus\/?p=218895"},"modified":"2025-02-21T03:54:36","modified_gmt":"2025-02-21T08:54:36","slug":"chart-advisor-telecommunications-silently-winning","status":"publish","type":"post","link":"https:\/\/www.interactivebrokers.com\/campus\/traders-insight\/securities\/macro\/chart-advisor-telecommunications-silently-winning\/","title":{"rendered":"Chart Advisor: Telecommunications, Silently Winning"},"content":{"rendered":"\n<p>By\u00a0<a href=\"https:\/\/links.investopedia.com\/u\/click?_t=36ba8fa8372241d58b3bfc06997a4332&amp;_m=658ea42dab1d473295aa38e7808585e0&amp;_e=EfC4D8h8DtntXFlW5E3MxP9TC_YcE77TmEuAtiWIgtrcPBJ7HwV5ug9fUOkzqlndNlg2MbY4hWUP02jvPXmtYRrP3YSdUeQTRDe6Y2V23La-DkQgAUbEBs4RHx8m_CX-bEz_Cod7OHXP5ZSkj8e2ds2HZ0bA-Z9ada7vxXcNx9Q47YpN9NmI7Mle-50L3Dux8hbwpjYGdNKA4AvcGFxedLWjDJ7iqom-MIrOSZbcQS-sQdRZ_UsYZSUeNQzm2RNkl16x06WTmv3a8VqBQuLRgrErymw9HDBnHS1xmOQrJzvJ_x2c8hB9VDj_Hm1McS1z-E_9EOmiBgUyLg1Edow8kOym5YaRk5dpk92LlqWO0ANAzIBS6oPALes6S0V6jwZ01Po1pQ4TU6p58aBNnuDrlhgar8Kbsx4Md8mTc0t_rywKiK1FR2y2o-7_Zz9NUbL2vKEorsNHbTBAUZfHtQfwmw%3D%3D\" target=\"_blank\" rel=\"noreferrer noopener\">Shane Murphy, CMT<\/a><\/p>\n\n\n\n<p><strong>1\/ Canadian Dollar<\/strong><\/p>\n\n\n\n<p><strong>2\/ Telecommunications, Silently Winning\u00a0<\/strong><\/p>\n\n\n\n<p><strong>3\/ S&amp;P 500 Equal Weight Technology<\/strong><\/p>\n\n\n\n<p><em>Investopedia is partnering with CMT Association on this newsletter. \u00a0The contents of this newsletter are for informational and educational purposes only, however, and do not constitute investing advice. The guest authors, which may sell research to investors, and may trade or hold positions in securities mentioned herein do not represent the views of CMT Association or Investopedia. Please consult a financial advisor for investment recommendations and services.<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-1\">1\/<\/h2>\n\n\n\n<p><strong>Canadian Dollar<\/strong><\/p>\n\n\n\n<p>The USDCAD pair resolved to the downside following 3-months of consolidation just below all-time highs. The next level of well-tested support is ~1.38. Bullish momentum continues to wane as technical indicators such as the daily MACD and PMO are now below their respective zero-lines. Indicative of further downside momentum.\u00a0<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1100\" height=\"612\" data-src=\"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/02\/Xa5LNad8-1100x612.png\" alt=\"\" class=\"wp-image-218896 lazyload\" data-srcset=\"https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/02\/Xa5LNad8-1100x612.png 1100w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/02\/Xa5LNad8-700x390.png 700w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/02\/Xa5LNad8-300x167.png 300w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/02\/Xa5LNad8-768x428.png 768w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/02\/Xa5LNad8-1536x855.png 1536w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/02\/Xa5LNad8-2048x1140.png 2048w\" data-sizes=\"(max-width: 1100px) 100vw, 1100px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/612;\" \/><\/figure>\n\n\n\n<p>The 3-year Z-score (an indicator that measures how far away price is from a long-term average) is normalizing but coming off historically high levels. This suggests the pair may be overextended and ripe for a reversal or further consolidation.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-2\">2\/<\/h2>\n\n\n\n<p><strong>Telecommunications, Silently Winning\u00a0<\/strong><\/p>\n\n\n\n<p>Telecommunications stocks have been silently winning for months now. The Telecom industry has outperformed the broad market by nearly 15% over the last 6-months. The below chart displays the ratio of Russell 1000 Telecom stocks versus the market. The ratio is trading above an upward sloping 200-day average. Additionally, the slope of the 200-day average is the most positive since 2016, indicative of strong forward price momentum.\u00a0<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1100\" height=\"809\" data-src=\"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/02\/WH81Grex-1100x809.png\" alt=\"\" class=\"wp-image-218897 lazyload\" data-srcset=\"https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/02\/WH81Grex-1100x809.png 1100w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/02\/WH81Grex-700x515.png 700w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/02\/WH81Grex-300x221.png 300w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/02\/WH81Grex-768x565.png 768w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/02\/WH81Grex-1536x1130.png 1536w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/02\/WH81Grex.png 1794w\" data-sizes=\"(max-width: 1100px) 100vw, 1100px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/809;\" \/><\/figure>\n\n\n\n<p>The industry\u2019s performance is driven by ongoing demand for essential services such as wireless, broadband, and 5G. The majors (AT&amp;T, Verizon, and T-Mobile) have reported solid earnings, with growth in their customer bases and consistent revenue from core services. Many have also seen positive results from their wireless and broadband segments, further contributing to the industry\u2019s recent strength.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-3\">3\/<\/h2>\n\n\n\n<p><strong>S&amp;P 500 Equal Weight Technology<\/strong><\/p>\n\n\n\n<p>The price ratio of S&amp;P 500 Equal Weight Technology to S&amp;P 500 Equal Weight provides insight into the relative performance of the technology sector compared to the broad market. A rising ratio indicates that tech stocks are outperforming, while a declining ratio indicates tech stocks are underperforming.\u00a0<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1100\" height=\"809\" data-src=\"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/02\/OQybXctQ-1100x809.png\" alt=\"\" class=\"wp-image-218898 lazyload\" data-srcset=\"https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/02\/OQybXctQ-1100x809.png 1100w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/02\/OQybXctQ-700x515.png 700w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/02\/OQybXctQ-300x221.png 300w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/02\/OQybXctQ-768x565.png 768w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/02\/OQybXctQ-1536x1129.png 1536w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/02\/OQybXctQ.png 1794w\" data-sizes=\"(max-width: 1100px) 100vw, 1100px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/809;\" \/><\/figure>\n\n\n\n<p>Despite spending the majority of 2H 2024 below the 200-day average, the ratio recently broke out to new 6-month highs. If investors were fearful or pessimistic on stocks, they would not bid up high growth technology names! In other words, the recent move signals an increase in risk appetite &#8211; something very common in a bull market.<\/p>\n\n\n\n<p>&#8212;<br>Originally posted 20th February 2025<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By\u00a0Shane Murphy, CMT 1\/ Canadian Dollar 2\/ Telecommunications, Silently Winning\u00a0 3\/ S&amp;P 500 Equal Weight Technology Investopedia is partnering with CMT Association on this newsletter. \u00a0The contents of this newsletter are for informational and educational purposes only, however, and do not constitute investing advice. The guest authors, which may sell research to investors, and may [&hellip;]<\/p>\n","protected":false},"author":186,"featured_media":218896,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":true,"footnotes":""},"categories":[16,18,6,8,9,22,23,26,3],"tags":[187,16088,7055,910,12820,1051,11122,1050,4270],"contributors-categories":[13686],"class_list":{"0":"post-218895","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-forex","8":"category-macro","9":"category-north-america","10":"category-region","11":"category-securities","12":"category-stocks","13":"category-technical-analysis","14":"category-text-articles","15":"category-traders-insight","16":"tag-macd","17":"tag-pmo","18":"tag-russell-1000","19":"tag-sp-500","20":"tag-telecom-companies","21":"tag-tmus","22":"tag-usd-cad","23":"tag-vz","24":"tag-z-score","25":"contributors-categories-investopedia"},"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"<!-- 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