Tuesday, November 20, 2007

Utility Stocks Breaking Out?

About a week ago I posted a few comments about my list of potential longs in the stock market. Since then many of the stocks on my list have broken their uptrend which means I won't be buying them, however there is one group of stocks on my list which is showing some bullishness.

Above is a daily chart of the Utility index and below that is the S&P. Notice how the S&P has been trending lower from October 22nd until now while the UTY index is trending higher. This tells me that money is moving into utility stocks. Also notice that the UTY index is very close to making a new 52 week high. I am long a few utility stocks as of today with the hopes that this index will bust through the year high...we'll see what happens.

1 comment:

Andrei said...

Good post. How about the consumer staples.. I believe they also start to move when the general growth and value companies start to get hit.


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