Broadcasting and Entertainment
By Terry Long December 17, 2020
Welcome to the Sector Spin with Terry. In this new video series, I’m sharing with you what I’m watching each week in various Sector industry subgroups.
This week, I’m going to take a look at stocks in the Broadcasting and Entertainment industry group. This group is part of the Communications Sector which has recently returned to the leading quadrant in our weekly RRG.
Here I show the various industry subgroups for the Communications sector. Let’s take a look at a weekly RRG chart for this subgroup. At first glance, this group appears to be centered somewhat to the left of the benchmark SPX. While the majority of stocks in this subgroup have northerly vectors, meaning increasing momentum, there is clearly a group of stocks that have already established a leadership position and there is a nice collection of stocks poised to become a secondary group of leaders soon.
Using a bit of filtering, I’ve narrowed the list down to the current leaders and those most likely positioned to come in behind the first group. This symbol, DJUSBC, is the composite vector for this Broadcasting & Entertainment subgroup. As you can see, the group as a whole is already established in the Leading Quadrant and has a strong NE heading, meaning it is increasing Momentum and Relative Strength simultaneously.
These stocks with NE headings that are now crossing over from the Improving Quadrant to the Leading Quadrant should continue to make further advances as they follow the first group over. Pick some of these stocks and look at the price trends and use your Elliott Wave or other techniques to identify key support and possible entry points.
Having a powerful tool such as Optuma to help us drill into the details of Sectors and the Sector Subgroups gives us a key advantage and an ability to be more selective in the stocks which we choose to trade and/or add to our portfolio. Good luck in your trading ventures and be sure to check us out at TradingAnalysis.com.