Utilities always take a hit with rising interest rates. Here we are in a downtrend and a wedge triangle forms and cannot get past long-term support which has now become resistance. Targets at both at recent low for a quick two pints and then at next LT support and Fib extension at 48.58, for another ~ 2-3 points
XLU has formed a double top.
Utilities have been a flight to some degree of less risk. However Looking back to 2008 and 2000 utilities were hit just like most other equities.
I believe that utilities are going to be hit again within the next year.
* This information is not a recommendation to buy or sell. It is to be used for educational purposes only.
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 ...
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 ...
I have been a huge component of growth slowing, and the cyclical/defensive proxy of XLI/XLU is a clear indicator that the growth outlook is mixed at best.
Not only that, you might be a beta (probably the bad kind). When you see both growth and inflation slowing on a rate of change basis on the back drop of higher volatility, you must always look to long low beta, ...
AMEX:XLU seems to develop bearish divergences that push the price down towards this bullish trend line (in the purple). The bearish movement could take some time to develop. We could see more bullish movement in the short term.
In an environment of declining rate and stocks prices, Utilities are a sector who tend to outperformed. With 10 year US rate heading to 3,00% and stocks much lower, XLU can be a good bet against general index
Utilities have started to outperform, meanwhile other sectors are underperforming. Just looking at history, you only have to go back to 2015-2016's industrial mini recession and EM recession to see how utilities outperformed other sectors. During this time, $XLU rose 25% while the S&P was flat, and technology / other cyclicals were all negative.
Cyclical sectors ...
New bullish credit spread on XLU. Opened and moved above the $53 mark this morning. Looking for a higher low and mid 52s to confirm as support early this week.
Break even 53.21
Max profit 53.50
This is the first update for the video series here to grow the paper portfolio on TradingView in an attempt to beat the 'S&P index real time. Normally, I will compare the portfolio to the market, talk about weak vs strong stocks and sectors & go into what I will be changing moving forward. The portfolio has been able to get ahead of the general market and below ...
Taking an opportunity to buy the 4 day dip on XLU utility stocks etf. The stock fell has fallen -2.59% and am taking the opportunity to buy the weakness and compound returns for the stock to go higher. I bought the November 52 call/ 54 sell call for 1.18$ per contract. When the stock goes up 2.82% at 55$ a share, this vertical call spread will profit approximately ...
In this video I analyze a live trade that I have been in for a few days now. I discuss how I was able to use price action to point out "red-flags" where it looked like price might turn against me. By acting on the price action I was able to get out just before a large drop and then get back in, almost where my trade originally started, but with a better cost ...
XLU, S+P Utilities SPDR gapped down on the OPEN on 8/8, trading below the 7/6/18 High of 53.29,
and reentered the prior price area after breaking above it on the 2 Hour Chart in recent days.
Price should not have done that.
The implications are bearish, leaving behind
what appears to be a Head, in a H+S Reversal Pattern. Too early to tell.
In order to ...