Media & Entertainment

January 29, 2024

Subsector Highlights

As I was doing my review this weekend, this subsector jumped out at me as needing a little closer look. I did a quick dive this morning to provide some actionable ideas in a space that is moving. Below you can see a few of the pieces of data that brought me to dig deeper. Let’s take a quick swing through the subsector and then I have 17 charts at the bottom that I think are worth looking at closer to see if there is a trade in there somewhere. 

Subsector Chart Review

The RS/RSI chart is where we start and can see a longer term breakout is in the works here as it held the RSI bull range and fired a RSI Positive Reversal at the lows and hasn’t looked back. The shorter term flag broke early in the week and sent the space moving strong. The RS scores at the top of the chart are also making gains on all timeframes at this point. The breadth chart shows the participation is at highs on many measures and the McClellan Summation Index crossed back into a buy signal. These are healthy numbers, but as you can see, none of the absolute levels are elevated to the point of any concern. The Relative Comparative chart showing improvement across the board, a good bit of which was gained during the pullback which is always a good sign. The Percentage making new highs is also expanding at a good pace here during this breakout attempt. All the charts are pointing to improvement.

Ideas for Review

Below are a group of marked up charts from the group. Most of these look potentially actionable over the near-term depending on your time frame and style of trading. That doesn’t mean they are at a buy point today, so do your DD and make a trade plan before getting involved in these names. The best way to make any trade a success is to own it yourself, not just take it as a tip from me or anyone else. These charts should be your starting point.

This quick review was about providing actionable ideas for those who want to find a way into this space.  The move we saw in both price and breadth look like they could be a starting point to new leg if the breakout can follow through.  Good luck this week!

This information is for educational purposes only and is not a recommendation.  Please see the full disclosure in the footer.

As always, I hope this helps!