We did a sector sweep yesterday (http://finviz.com/groups.ashx is quite helpful to find out sector rotation) and we think we found a good one to find longs.
The chart is shown with the ew labels. We are looking for a retracement of the triangle apex.
Potential longs are D, SO, EXC, DUK, AEP, etc...
The good news is this sector is filled with stocks offering super dividends. So any profits we stumble upon ;-), we will take in the form of stock.
2 comments:
I question the steepness of your B line since it is drawn from the March lows. Once the low is taken out, it has traded in a fairly narrow/flat range since, as utilities tend to do. I have traded the utility ultra lately for some nice small profits. It doesn't tend to run too far too fast on you, even when an ultra.
Hmm, you may be right. I made a mistake. I should have taken the B line from the Apr lows. Nevertheless, I believe there seems to be some gas left in utilities.
I agree with your beta theory too, Utilities move slowly. But I love their dividends.
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