Utilities “losing Power?” Harvesting gains in XLU…

Posted by Chris Kimble on 05/25/2011 at 3:58 am; This entry is filed under Utilities.

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Bought Utilities on an upside breakout. Utilities have powered higher and out performed the S&P 500 by a good margin of late!  This defensive sector has done really well of late. Is this break of support sending a message of a weak economy or a rotation to growth???

Game Plan....Am harvesting the gains in XLU due to a break of support.

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2 Comments

  1. cjk May 26th, 2011 at 4:40 pm

    Chris – are you looking to get back in if old resistance/new support holds? For traders, XLU outperformed SPY in the 2007-2008 timeframe when the market was in the topping process with some nice rallies. Could it be the same story now with investors possibly looking for saftey/dividends in more defensive positions? cjk

  2. Chris Kimble June 1st, 2011 at 1:42 pm

    cjk…Utilities have been a great defensive play in the past, yet if the markets really head south/break key support, I believe cap preservation will be more important than owning a “defensive sector.”