“Services” Stab:
The communication services group from a YTD perspective may have some leaning negatively. It is still higher by more than 14% in 2021 this far, but comparatively speaking that makes it just the 9th best of the 11 major S&P sectors. Last week it slipped more than 3% making it the 10 best of the 11, and on a 3-month lookback period, it is by far the worst actor off more than 7%. The action in the XLC does not tell the whole story however as there is major bifurcation within. The internet names as a whole are up more than 30%, while media, fixed-line, and mobile communication are all off between 8-15% in a very healthy overall market (of course other laggards that are lower YTD include SNAP TWTR PINS GDDY). Looking for leaders that may have been weighed down by the anchoring spaces one would find NFLX and GOOGL, which were rejected at the round 700 and 1300 figures this month. Below is the chart of DASH which could be presenting an opportunity. Last week dropped almost 13% and CLOSED just above the lows of the huge week ending 11/17’s gain of 24% in the third-best WEEKLY volume since it started trading one year ago. The double bottom near 260 seems to have played itself out and as long as it remains above its 200 day SMA paint the picture bullishly.