The telecom sector including AT&T (T) has rallied sharply to start 2016. The price action on Friday suggests that the stock possibly hit a short-term top. $T, AT&T Inc. / 1440 The catalysts for the rally were a flat stock prices for 3 years and the ability to survive the domestic wireless pricing war. As well, the benefits of the accretive deal with DirecTV are starting to kick into earnings estimates. With a 5% dividend yield and a reasonable valuation, AT&T isn't expensive by any means. The biggest concern going forward is that the pay-TV business acquired from DirecTV was bought at the top of the market. My view is more neutral on AT&T after being bullish to end 2015. Disclosure: No position