INTER-MARKET ANALYSIS: JSE Telecoms Index vs JSE All Share Index
Long Term Shift -Sitting Between Equal to Overweight vs All Share Index
On a relative basis, and from a sector allocation perspective, the relative ratio chart of the JSE Telecommunications Sector versus the JSE All Share Index suggests that long term investors are possibly shifting from an underweight to equal weight and overweight positions versus the benchmark. Technical evidence of this is provided by the break of the channel extending back to October 2014. We also note the break of the downward trend line extending back to the peak of November 2007 (a positive development).
WHY USE INTER-MARKET ANALYSIS? Inter-market is a powerful form of analysis, which is often utilized at an institutional level. The purpose being to ascertain which sectors, individual stocks, bonds or currencies may outperform or under-perform another. Essentially, it assists investors in understanding where to allocate capital and where to be over, under or equal weight, versus the market or versus an another sector.
On a relative basis, and from a sector allocation perspective, the relative ratio chart of the JSE Telecommunications Sector versus the JSE All Share Index suggests that long term investors are possibly shifting from an underweight to equal weight and overweight positions versus the benchmark. Technical evidence of this is provided by the break of the channel extending back to October 2014. We also note the break of the downward trend line extending back to the peak of November 2007 (a positive development).
WHY USE INTER-MARKET ANALYSIS? Inter-market is a powerful form of analysis, which is often utilized at an institutional level. The purpose being to ascertain which sectors, individual stocks, bonds or currencies may outperform or under-perform another. Essentially, it assists investors in understanding where to allocate capital and where to be over, under or equal weight, versus the market or versus an another sector.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.