In various articles, we have been discussing the new surge of liquidity and what sector it will find. Emerging markets and anything related to them have been the primary focus, which means owning foreign stocks or owning the companies that are producing the basic material these countries are demanding.

One other benefit has been the continued growth and expansion in the wireless services sector. Many of these developing countries do not have a solid infrastructure supporting land lines, meaning any growth in telecommunications in these countries is primarily in the wireless segment. With these countries continuing development, their growing middle classes are demanding more goods, such as cell phones and cellular service.

As the market recovers off of the mid-August lows and confidence returns, traders are looking for strong relative-strength sectors to get long. One sector that looks particularly attractive to us right here is the wireless group. Wireless stocks have shown strong relative strength vs. the broader market during the subprime-led downturn, and they are now positioned to lead to the upside. The group has shown strong liquidity inflows since last summer.

Wireless Sector Breadth

Click here for larger image.

Breadth, which is a proxy for liquidity, continues to hold the uptrend channel and suggests that money is finding its way into these stocks. Within the wireless sector, we are seeing particular strength in the foreign wireless companies. The growth rates for wireless adoption in the emerging markets outpaces domestic demand by a wide margin, and this reality is showing up in the relative outperformance of foreign wireless telecom names.

Mobile Telesystems

Click here for larger image.

TheStreet Recommends

A foreign wireless company that looks strong and is on the offensive right here is

Mobile Telesystems

(MBT) - Get Report

. The company services over 76 million subscribers and is one of the largest wireless providers in Russia.

MBT has developed a bullish technical backdrop, and the stock looks positioned to move higher from this level. MBT has broken out of a large consolidation formation in 2006 and has rallied within the context of a solid looking uptrend channel. Recently, the stock formed a bullish ascending triangle and confirmed the formation with an upside breakout. Ascending triangles are continuation patterns that suggest the stock is ready to resume the primary uptrend.

MBT is a stock in a strong technical position in a sector that is showing strong relative strength. Strong stocks in strong sectors are the types of stocks that traders should be looking to get long right now.

At the time of publication, John Hughes and Scott Maragioglio were long Mobile Telesystems. Hughes and Maragioglio co-founded Epiphany Equity Research, which has developed and utilizes proprietary tools to identify and track liquidity changes in the market indices and sectors. Hughes advises numerous asset managers, hedge funds and institutions managing in excess of $30 billion. Maragioglio is a member of the market technicians association (MTA) as well as The American Association of Professional Technical Analysts (AAPTA) and holds a Chartered Market Technician (CMT) designation. Maragioglio has also served on the board of directors of the AAPTA.