XLU trade ideas
XLUFailed breakout again last week. Watching for another attempt this week. Needs to stay above midpoint trendline for bullish bias.
V Bottom ABC BullishV Bottom break out is over prior high. This has not been broken
ABC possible targets and break out listed separately
Top 10 Holdings
NEE - NextEra Energy Inc16.18%
D - Dominion Energy Inc8.01%
DUK - Duke Energy Corp7.33%
SO - Southern Co6.79%
AEP - American Electric Power Co Inc5.07%
EXC - Exelon Corp4.43%
SRE - Sempra Energy4.29%
XEL - Xcel Energy Inc4.27%
ES - Eversource Energy3.57%
WEC - WEC Energy Group Inc3.54%
Possible Targets 2: 92 98
!XLU Long Entry: 13:26:00 (UTC) Thu Jul 30, 2020Today's GDP number has confirmed cyclical inflation, with a devalued dollar (not a longterm, more like 5-10 months) of inflation. For those that don't understand how inflationary economic progress without real (nominal) GDP works, it's bad for everyone except the wall-street facilitating primary dealers and broker dealers. It's that easy. Even though good are going up for the average family, do you think that wall street speculators care?
XLU - Symmetrical TriangleLooking for a breakout to the upside.
But it could easily go the other way.
Thoughts?
XLU Position Update: 13:57:15 (UTC) Tue Jun 16, 2020XLU Position Update: 13:57:15 (UTC) Tue Jun 16, 2020
XLU:SPY UpdateI previously made an analysis on this ratio. Here is an update.
Typically the Utilities sector ( XLU ) serves as a hedge in recessionary times. This sector is made up of companies such as water, electricity, natural gas . Companies within this sector usually offer steady and consistent dividends and are less volatile relative to the general market.
The XLU:SPY ratio suggests that when it breaks out above 240-SMA, XLU tends to outperform the SPY . That is what we call RISK-OFF. On the other hand, when it breaks below 240-SMA, SPY tends to perform the XLU. That is what we call RISK-ON.
Currently, the ratio XLU:SPY already tested the 240-SMA and found resistance. I see there was a negative divergence between XLU:SPY ratio and its RSI back in March 2020. Ratio just broke daily uptrend line. My conclusion, we may see higher numbers for the SPY in the following weeks.
