Another Out-of-Favor Sector, Telecom

While I was doing my search this weekend, another sector that looked almost ready for a long term breakout is Telecom HOLDRs Trust (TTH). As you can see the long term chart has been building a base for three years. A move above $30.50 would be a breakout. Right now it is trading at $29.67 and the direction is up. I took a small position in this Exchange Traded Fund on Monday July 24th, 2006.