TELECOM

The performance of the Telecom sector has improved dramatically over the last couple of months. Technically the picture has clearly turned more positive.
On the chart below you can see, the breakout in absolute (in red) and relative basis. (Black line)

The Telecom sector is ranked 2nd out of the 18 Stoxx sectors rankings. (Just below Financial Services).

It seems that the investment community is finally warming up to the positives this sector has to offer: strong (free) cash flow generation cleaned up balance sheets and a high dividend yield.

TELENET: The upward trend for TNET remains intact but after a strong rise, the stock is correcting from an overbought level.Buy the dips.