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As I have been discussing in my recent video market recaps, if the market is going to emerge from this choppy period and commence a fresh leg higher, it is bound to be much more of a stock picker’s market. As the bull matures, capital tends to rotate out of the previously obvious winners towards sectors that may have lagged heretofore. The coal sector is one area that I have been watching closely, as money may come out of some of the frothier oil services names.

Another group of stocks that are rather blatantly under accumulation (heavy buying by institutions) are communications equipment firms. Even during last week’s broad market volatility, especially on Friday, this sector displayed unbelievable relative strength. Below, I am going to present the leaders of the group first, followed by other firms setting up behind them.

See my notes on the charts.

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