If you want to outperform the market, you need to own the things that are outperforming the market.
It’s not enough to just make money during a bull market. You could own Treasurys and “make money”, but there’s a huge opportunity cost of owning Treasurys when you could own stocks that are rising in value much faster.
That’s why we spend so much time looking at relative charts. We want to know which sectors and stocks are leading and lagging so we have a chance of finding the ones that will beat the benchmark.
And on a relative basis, the Communication Services sector has a problem with overhead supply.