Home > sector analysis > Sector Analysis: Telecom (domestic services)

Sector Analysis: Telecom (domestic services)


When a stock trader does his or her homework at night, it should start with analysis of the market, then sectors. Market and sector study does a good job of filtering out the “noise” of individual stocks and gives you a good idea of money flow as a whole. Once you get good ideas of supply or demand, you can then take a look at the stocks in those sectors.

The telecom chart here is clearly displaying demand. The sector had a clean breakout from an six week consolidation. The next step would be to identify the stocks from the sector that are showing a mirror image of the big picture of the sector. Once that is done, you trade those stocks intra day ONLY in the direction of the daily trend.

The stocks we are trading now in sync with the money flow of the sector are: T, VZ and Q

Categories: sector analysis
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