If we get a nice Santa Clause melt-up, followed by a sell off in January, expect people to flock to utilities. The first bill everybody pays is their electricity bill. If we start to get the handle formation, I'm betting the house as soon as we gap up.
Will Utilities volatility spike coincide with stock market volatility spike this time? I think it's worth a bet.
Idea for this week: BMFBOVESPA:CSMG3
It seems if there is no crash in Utilities, then there is no crash in the stock market, we need to watch the lines here. Utilities are very high right now.
It seems only volatility in Utilities can truly threaten equity , so that this might be the ultimate indicator for going short equity . Right now the danger level is very low, because Utilities are through the roof.
Trading Idea for tomorrow. Long BMFBOVESPA:CPFE3 with great P/L ratio. CPFE3 is lagging other Brazilian utilities sector stocks.
$XLU continues to range inside the PRZ of a Daily Bat pattern. Two successful sells I had on this one.. Will the third one be the one that will lead $XLU to its final destination? 45-46$ is my final target zone for this setup Tomer, The MarketZone Follow me on TradingView Subscribe to my newsletters - goo.gl Follow my blog - goo.gl Subscribe to my Youtube...
The Bat pattern I've mentioned in the past for $XLU was completed last week. As you can see there was minor bearish reaction to my harmonic sell zone. $XLU is very close to 50$ so we may see it try to touch this psychological level.. that's usually what happens. The bearish scenario for $XLU requires a stop loss above 50.5$ with nice R/R as I aim for 47$ as my...
The XLU has recentlly reached it's high of early 2015 near $50 which seems to offer strong resistance. A double top seems to be in process. Elliott waves count of 5 waves is completed, a correction seems to have started towards the $46.70/$45.35 area, The wave III should just have started, a fast drop is expected. RSI (5) and MACD are showing beairhs divergence...
Really? We are really counting on Utilities to lead the market by making a historic new high?
$XLU is no doubt one of the strongest sectors out there. The bullish setup from 41$ generated impressive rally in time where the markets suffered mostly losses. Now, as sentiment starting to shift, we may see continuation move towards final target zone of the bullish move - Completion of Bat pattern near 49$ Two zones to monitor in $XLU: 1. 45$ - Currently...
XLU - the SPDR utilities sector ETF is struggling to get back into macro uptrends, while showing no bias on short term. On long term perspective the price is trading around upper 1st standard deviation from 5-year mean, which is a 5-year uptrend border. The price is also technically in 10-year uptrend, trading above the upper 1st standard deviation from 10-year...
Running Alpha Capital Markets observes that higher rates are not always a headwind, as the not too distant record shows that the electric utilities group can outperform and offer a margin of safety. During the last period of higher rates, from mid 2004 to mid-2006, the FOMC hiked rates 16 times, and despite these incremental actions, electric utilities actually...
Hi all, This is an update to the Short OGE Trading Plan, which is about Trading a Double Top Pullback. Update as of 29 June 2015: Market has plunged sharply down from $31.20 in the last update to as low as 28.65 on 25 June, and currently hovering at $28.80s. At this point, the bears have used up much bearish momentum pushing the price to $28.65 and we are...
Hi all, This is an update to the Short OGE Trading Plan, which is about Trading a Double Top Pullback. The Earnings Release on 7 May 2015 showed better than expected results. This has driven price to open higher at 32.23, reaching as high as 32.38 before closing the day at a loss for $31.96. This price action shows that the Earnings Release has failed to...
This is a WEEKLY chart of FTR. You are looking at about 7 years of history... FTR just recently bought some assets from Verizon. I would say the stock ran up on the purchase and now it is falling back to the uptrend line that started back in early 2014. Is FTR a good investment candidate at this point in time? Let's look at the best part of the chart first. ...
Intermarket Study for 2014 Utilities - XLU - and Health Care - XLV - Outperformed in 2014, and these two sectors saw the biggest % gains later in the year. Health Care and Utilities are considered economically insensitive sectors, and tend to outperform when the market is at risk of a pullback or a sideways markets. Historically, economically-sensitive sectors...