Recent developments highlight significant advancements in AI strategies and operating systems, underscoring a transformative period within the industry. Key players like Alphabet are shaping market dynamics through innovative approaches and strategic maneuvers, including potential mergers and acquisitions. The landscape is shifting as companies navigate acquisitions and evolving media roles, prompting active discussions on market strategies. Overall, the sector is characterized by both robust competition and collaborative opportunities. The price action of Communication Services (XLC) sector is shaped by numerous forces, ranging from broad macroeconomic trends to company-specific performance and market structure. The trend sentiment at 0.4 is modestly bullish. The market sentiment at 1 is bullish. Trend sentiment measures the current trend of the stock price, and market sentiment reflects what market participants collectively think where the price will move next.XLC is likely to move up since both trend sentiment and market sentiment are positive. The positive sentiment force for Communication Services sector is at 1.2, and the negative at -0.2 on 2025-12-30. The forces of Sentiment towards Fundamentals (3), Valuation Sentiment (2.2), Option Sentiment (1.1), Sector Price Trend (0.4), and Broad Market Trend (0.2) will drive up the price. The forces of Market Risk Appetite (-0.5), and Price Level Sentiment (-0.5) will drive down the price. The sentiment for Broad Market Trend is calculated based on SPY trend. The sentiment for Sector Price Trend is calculated based on XLC trend. The sentiment for Option Speculation is calculated from put/call ratio. The Risk Prefrence is calculated from Bitcoin price trend. Price Level sentiment is positive when oversold, and negative when overbought. Valuation Sentiment, and Sentimentals towards Fundamentals are extracted from headlines and market commentary. All sentiment scores are normalized on a -10 - +10 scale. The price level reaches 100 at Bollinger upper band, and zero at lower band.

XLC
Date	Attention	Price	Price Level	Change	SMA10 Trend	Trend Sentiment	Hourly Trend	Hourly StdDev	Market Sentiment	Action	P	Fund.	News Sentiment
2025-12-30	0%(0.1%)	118.28	95	0.33%	0.17%	0.4	0%	0.2%	1	Short	75%	3	-2
2025-12-29	0%(0.1%)	117.89	87	-0.07%	0.09%	0.4	0%	0.1%	1	Wait	50%	2.8	-0.5
2025-12-28	1%(0.1%)					0.4	0.08%		0.5			2.6	2.5
2025-12-27	0%(0%)					0.4	0.08%		0.7			2.5	-0.5
2025-12-26	0%(0.1%)	117.97	96	-0.1%	0.17%	0.4	0.08%	0.2%	1.1	Short	75%	2.6	-0.5
2025-12-25	0%(0.1%)					0.4	0%		1.1			3.1	-0.5
2025-12-24	0%(0.1%)	118.09	100	0.59%	0.09%	0.4	0%	0.4%	0.9	Short	75%	3.1	5.5
2025-12-23	0%(0.1%)	117.4	87	0.65%	0.09%	0.4	0%	0.3%	0.7	Long	70%	3	-0.5
2025-12-22	0%(0.1%)	116.64	70	0.11%	0%	0.1	0%	0.2%	1.1	Wait	50%	2.9	-0.5
2025-12-21	0%(0.1%)					0.2	0%		0.4			2.4	-0.5
Short is the preferred trading strategy with 75% chance of being right. The hourly trend is not too bullish and the price has reached very close the upper boundary of Bollinger band. Wait action is recommended in three scenarios with either high uncertainty or high risk: 1. The trend sentiment and market sentiment are at the opposite directions. 2. Both trend sentiment and market sentiment are positive, but the price level is elevated. 3. Both trend sentiment and market sentiment are negative, but the price level is depressed. In an uptrend, as an investor, you may want to wait for the pullback to open long position. In a downtrend, the price will likely rebound after huge decline. As an investor, you may want to wait for the rebound to exit long position.
Market sentiment will accelerate the current trend when both trend sentiment and market sentiment are at the same direction. Market sentiment will generate volatility when it's at the opposite direction of the trend sentiment. News sentiment measures the daily emotion of the market. News sentiment may impact the daily price change while market sentiment is a more stable and consistent moving force.