Time to Lock in Gains on XTL?
Telecom’s Hot Streak Faces Its First Speed Bump
🚀 The Run So Far
After a 20% rally in 3 months and a 31% YTD gain, XTL 0.00%↑ SPDR S&P Telecom ETF
has been one of the strongest sector ETF moves this year. Quantmatix caught the turn early — back in late April when our weekly score flipped from -8.5 to bullish.
But as of last Friday’s close, momentum looks stretched. Our system has now printed a negative reversal off a high of +9.2 — a signal that the upside may be running out of steam. ⚠️
🧠 What the Data Says
Medium-Term View:
Score rolling down from +9.2
Momentum fading → the “easy money” phase looks over
Relative $XTL / $SPX signal (bullish May 19th off -7.2) now sitting at +8.6 pending bearish reversal, awaiting Friday’s confirmation
Under the Hood:
80% of components still positive ✅
But 53% are declining and this week shows 7 bearish vs 2 bullish reversals 🚨
Long-term score remains solid at +6.1
72% of names positive, 69% advancing, 9 bullish reversals logged in the past month 💪
⏱️ Who’s Turning?
Confirmed Bearish Weekly Reversals:
Commscope (COMM)
Extreme Networks (EXTR)
Calix (CALX)
Telephone & Data Systems (TDS)
Pending Bearish (Watch List):
IDT Corp (IDT)
AT&T (T)
Verizon (VZ)
🏁 Takeaway
The long-term structure for XTL remains bullish, but our proprietary scores are flashing medium-term caution.
If you’ve been long since our April signal, now is a textbook moment to start trimming profits and reallocating risk. The next big tell will come at Friday’s close on the $XTL / $SPX relative signal.
👉 For active traders: lock in some gains here, keep dry powder ready, and let the system guide the next entry.