$XLU with a potential sideways C&H!Not the most exciting sector, but it has been known to move. Worth watching at these levels.
XLU trade ideas
Long XLU short IWMIt is time to go defensive again. ISM PMI declining from expansion, historical high percentiles of distribution. US10Y going down together with ISM. Long Utilities as defensive sector, short IWM small-caps high-beta assets.
Best,
XLU to Outperfom Broad market valuations are stretched beyond the historical averages, growth and cyclical technicals are in overbought conditions on many time frames, in addition key economic indicators are turning down as it appears we are mid cycle transitioning into phase 3 of the business cycle where we tend to see defensives, bonds and the Dollar outperform as the yield curve flattens. Yields are pushing lower as market participants price in a Fed policy error as tapering begins this month.
From a technical perspective, XLU is trading near its key moves averages which are stacked at $66, XLU put in short term double bottom at $63.50 back in early October and is currently in a bull flag formation, I expect continuation to the upside as market participants seek protection and yield. In addition, XLU/SPX is trading at a key support in a falling wedge signaling outpeformance in the near term.
Profit Target 1: 71 (previous all time highs)
Profit Target 2: 78
Utilities tend to move parabolic before a broad market decline. $78 target would be a blow off top scenario.
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stocks:
rblx, cat, lmt, xlu
expectopatronum!
Market "Risk Off" indicators warranting attentionThe long-term stock market trend unquestionably continues to be an upward one. However, there are seasonal and other factors (such as market breadth, etc) that may be pointing towards a potential pause or reversal.
Since no single indicator is fool-proof, a "weight of the evidence" approach is always warranted. Such an approach ideally includes a variety of indicators that could offer an advance signal of a switch from "risk on" to "risk off" environments. One such measure to consider in your toolbox is how defensive equities such as Utilities (typically sought out for their yield) are faring against the broader equity market. The accompanying relative strength measure plotting $XLU against $SPY has broken trend and reversing upward for the last several weeks. Again, not overwhelming by itself, but when coupled with other indicators (such as previously posted JNK or XLP updates) it warrants continued monitoring in the coming weeks.
Short term upswingNo fundamental support.
Just technicals and hopes.
Don't follow my idea without doing your research.
XLU, Immediate term trade and trend [08OCT2021]XLU went strong bearish. I love to add this to short side of my portfolio, but my broker doesn't unfortunately allow it.
Then why do I track it? well, The code tracks sectors and ETFs to give a current weather of the market.
From what I can see so far, we are headed to another liquidity rush. Where, Equities make new all time highs.
If you can add it to the short side, I would suggest also adding XLF to the long side, along with a small XLK position too.
Let's see how this plays out
Redd
XLU at the bottom of the channelThis has traded within a channel for over a year. No reason to think it won't continue.
XLU looking for Fibonacci extension.Utilities keeps pushing higher and is looking to be chasing for the extension to the 1.272 fib. This is a long term play that I have been looking at for a while now.
XLUInvestors appear to be taking risk off as they move into Utilities. XLU continues to move higher; weekly RSI is approaching 61.8 level. This level provided strong resistance over the past year or so. Therefore, a move past that level would be significant.
XLU short at 66.18Staying short Weekly heading down been taking profits on way down look lower highs
Utilities love both quads 3 and 4Given that is where we are headed (quad 3 or 4), I 'll be looking to build a position here. I'll specifically be looking for a momentum swing on the oscillator as a signal the regime turn is happening, or in fact in.
XLU shrt at 66.18Staying short XLU
Daily says snap back into down trend, under 50 day ma sitting on 100 day ma. Look at vol more selling then buying
Weekly says stay short
XLU shrt at 66.18Daily stoch on bottom lots selling vol
should bounce off 100 day ma took some profits today not all
perfect bounce
Weekly looks great stoch heading south nice lower highs lower lows
Staying short XLUDaily lower lows lower highs, stoch going south
vol nice. That may bounce off 100 day , but it breaks we drop.
Weekly just pretty trend is down
XLU Daily Triangle BreakoutXLU looking very bullish as it breaks out of a triangle pattern along with confirming MACD.
XLU (Utilities)I love an underdog!
This has been underperforming this year but seems consistent and ready for a tune up!
XLU gonna be a great short again Remember I was short it and took all my profits
Daily wants to rally stoch up
Weekly not so still heading down has not turned up so with that the daily stoch rally will be weak
unless the weekly turns up, so in terms swing trading is a short still
with a small bounce
daily look lower highs like res short 66
XLU shrt at 66.18Daily stoch say sell off and if it breaks 590 day she will drop
Daily lower highs today candle engulfing
Weakly stoch say stay short swing trade
XLU shrt at 66.18Daily stoch says wants rally some
see how we held 50 day daily so I took 3/4 off short
keeping 1/4 on
I manage my money not my stock
Weekly says stay sort long term
will add back when chart says so
