Communications stocks relative to S&P 500 bouncing in a very logical level $XLC / $SPY pic.twitter.com/aEhWGoae09
— R. Alfonso Depablos (@AlfCharts) October 13, 2020
Today’s Chart of the Day was shared on Twitter by R. Alfonso Depablos (@AlfCharts). It’s a ratio chart of the Communications sector relative to the S&P 500 over the past couple of years ($XLC/$SPY). Tech tends to steal the spotlight away from the other 10 sectors. However, let’s not forget that the largest stocks in the Communications sector are names we normally think of as Tech stocks. I’m talking about Facebook, Google, and Netflix. These three stocks combined represent a whopping 50% of the Communications sector. As Alfonso points out, this would be a logical level to see the Communications sector begin to outperform the S&P 500.