The chart posted is the of the XLU we had a very clear 5 waves up from oct 2002 and we are nearing the long term trendline 21 yrs long and a .382 retracement . it has dropped in the form of an abc decline and a triangle to form wave X or B I tend to view it as an X since the peak on july 26th it has a classic ABC decline and it is now 70.2 days long...
CHART DISPLAYS LAST 30 DAYS
Utilities ($XLU) outperforming the broader market as represented by ($SPY) and growth oriented, tech based, sub-sector ($XLK) over the last 30 days.
This has a correlation with an increased 'potential' for instances of heightened, near term (2 to 4 weeks) market volatility.
During the recent selloff we can see that the 'bids' did...
Order BUY XLU ARCA Stop 68.04 LMT 68.04 will be automatically canceled at 20230401 01:00:00 EST
XLU daily bullish hammer stop loss below, take profit at 50% Fibonacci retracement ow wave 3 downtrend. Countertrend quickie.
XLU $XLU Initial Long. This is a pure momentum signal just as are every other signal I post. ZERO other factors are considered in producing this signal.
Entry reasons: XLU is showing momentum and confluence of mean reversion crossing up the 70 day price mean.
Exits and SL: TP and SL on chart. Move SL on TP. After TP2, trail with 0.5xATR step and 1.5xATR offset.
Updates coming from the previous "Banks Look Cheap vs Utilities" chart. For those who don't remember here are the flows we have been tracking:
Now it is clear US 10-year Yields are starting to withdraw again, although this time Banks vs Utilities are less affected. I have been talking with clients recently around this space and there is broadly no concern....
Utilities are defensive and traditionally do well in summer, when risk stocks suffer from ‘Sell in May’. In the last six consolidations, which often start around May, the price moves up after the consolidation ends.
Overall, the ETF has followed a clear parallel channel for four years now, and it is affected much less by macro events.
Each consolidation has been...
The XLU (Utilities ETF) is a well-known defensive (succeeds in troubled economies, you have to buy their product) and has a very clear channel. My trade enters at the bottom of the channel and so allows for further market weakness. The price only matched the previous top last time, so I am playing safe with that top as a target, rather than going to the top of the channel.
XLU, the SPDR Utility Sector is well-known, high div paying defensive, and has not broken support like SPY as a whole. Let's play safe with a 1.6:1 trade, with stop below the lower tramline and target the confluence high of the bullish and moderate cases, as shown by the regular and dotted lines. Aggressive traders could set the stop at 53.75, reflecting the...
