XLU trade ideas
XLU approaches top of its trading rangeXLU is showing signs that its recent rally maybe coming to close and start selling off for a period of time
XLU is currently one of the top sector ETFs for defensive move
Its turn around over the past year shows the rotational shift away from risk to defensive
Currently its recent rally is looking to come to an end.
Best to wait before making anymore purchases of XLU
XLU is running hot right now and is due for a pullback. Best to wait on the sidelines until after its coming sell off before adding to any positions
xlu My XLU Weekly Art AMEX:XLU #xlu #stockmarket #trader #daytrader #learn #technicalanalysis #ta #myart #investor as we continue to the upside, marked reaction zone around 95. xlu
Opening (IRA): XLU October 18th 71 Monied Covered Call... for a 70.09 debit.
Comments: For lack of something better to do, looking to grab the Sept divvy if I can. Selling the -73 delta call against long stock to emulate a ~25 delta short put with the built-in defense of the short call. This isn't the greatest entry given price action, but am willing to add should the market afford me an opportunity to do so at strikes better than the 71 ... .
The last distribution was .55/share; $55/one lot.
Metrics:
Buying Power Effect/Break Even: 70.09
Max Profit: .91 ($91) (excluding dividends); 1.46 (including divvies, assuming a .55/share distribution)
ROC at Max: 1.30%
50% Max: .46; 1.01 (including divvies)
ROC at 50% Max: .65% (1.44% including divvies)
utilities xlu Utilities will continue to rise #xlu AMEX:XLU #StockMarket #investor #technicalanalyst #trader #chart #myart xlu
Intuition stock $XLU longI need to make more of a practice of doing this, but I fight it for some reason. You can see prior ones were good for the most part, but I'm primarily just journaling this cuz it's working & I should keep track.
I was laying in bed before I got up on Monday morning and asked for a good stock. That's all you have to do and let your mind be completely open and neutral.
I recommend to anyone to try this sometime & just ask for a number after you think you have the ticker and see what happens.
The first time I tried it (after a psychic told me to do it), I was quite blown away as I got the low and high numbers for the week. The stock was RS, (I saw/heard the letters mentally) and I didn't know of it, but thought it might be a steel stock because of other info I received. So it went on to go up hundreds of percent over the years & others have as well.
So now I get XLU & the number 89. My dowsing said long and gave the number 91. I did get another mental number of 112.
We'll see.
#XLU $xlu70.20 Above sustain need for upmove
need to close above 21 ema
73 can test if channel breakout sustain
73 above will review for new target
Utility Buyers Getting GreedyUtility stocks have been on a tear recently. Just a few days ago, 93% of the stocks in the S&P Utilities Index were trading above their 200-day moving average, and now the breadth is deteriorating rapidly with just 80% of these constituents above their respective MAs.
After today's slide, it seems the line of least resistance is to the downside, at least in the short-term.
Short UtilitiesUtilities have risen along with a bond rally, stock market surge and AI-hype.
Stock market is back near peak valuation hit in late 2021, AI-hype is fading and surge in commodities is putting a lid on bonds.
XLU also firing exhaustion signals.
Utilities Getting Ahead of ThemselvesLong term bullish on Utilities, but this is quite the move over the last few weeks.
Looks exhausted with the latest Friday candle forming a -> dark cloud cover.
Also interest rates have not dipped that much to push this interest rate sensitive sector higher, perhaps hype around AI energy usage is driving this.
Trade: Short term pull back -> bear credit spreads
XLU ShortXLU high probability Short from here. 100% extension (AB = CD).
Historically pullback whenever RSI is over 75.
Utilities setting up?The daily chart on XLU provides rationale to keep a place on our watchlist. Recently it made a golden cross and seems to have broken free of a downdraft in price. Now it looks like the RSI could be searching for overbought.
One option is a momentum trade targeting the $71+ price. Personally I'd like to see it hit overbought, then that a position of it pulls back down around the 50 & 200 day MSAs. Looks like with some patience there could be 15% out there depending on how things develop.
xlu
#xlu AMEX:XLU Utilities are starting to rotate, moving opposite to AMEX:SPY #spy #trader #investor #stockmarket
XLU Potential Breakout $XLUXLU Potential Breakout Analysis
AMEX:XLU is indicating a potential breakout based on technical analysis, suggesting an opportune moment to consider exploring the utilities sector.
Why Utilities Sector?
The utilities sector is recognized for its defensive characteristics and stable performance, making it an appealing choice for investors seeking a haven during market volatility. Companies in this sector typically provide essential services such as electricity, water, and gas, which are in constant demand regardless of economic conditions.
Noteworthy Companies in the Utilities Sector:
NextEra Energy ( NYSE:NEE ): A leading clean energy company focusing on renewable power generation, transmission, and distribution. NextEra Energy's commitment to sustainability and innovation positions it as a key player in the utilities industry.
Duke Energy ( NYSE:DUK ): An electric power holding company serving millions of customers across several states. Duke Energy's established presence in the utility sector and ongoing investments in infrastructure make it a reliable choice for investors.
American Electric Power ( NASDAQ:AEP ): One of the largest electric utility companies in the United States, providing electricity to millions of customers in various states. With a strong emphasis on modernizing its grid and embracing renewable energy sources, American Electric Power is set for long-term growth.
Exploring investments in these companies within the utilities sector could offer a combination of stability and potential upside. Stay tuned to AMEX:XLU for further signals of a breakout to seize the opportunity effectively.
XLU A utilities ETFThis vanguard fund appears to have broken a bearish down trend and has broken past the 200 day EMA. Order blocks show some strength near this level. If you are bullish, you can even use UTSL for a 3x leverage play on this sector.
XLU Weekly Chart Nothing to see here. I know very little about this industry. The return of this ETF has been poor, 5year 9.78%.
Opening (IRA): XLU April 19th 62 Covered Call... for a 60.31 debit.
Comments: For lack of something better to do, looking to grab the March dividend here, which should be in the vicinity of .60/share.
The top 5, options liquid dividend-yielding ETF's are: EWZ (10.90%) (paid twice a year in June and December); EFA (5.27%) (paid twice a year in June and December); XLE (3.78%) (paid in March, June, September, December); XLU (3.16%) (paid in March, June, September, December); EEM (3.10%) (paid in June and December); EWW (3.08%) (paid in June and December).
Will look to roll out the short call on test of my break even, but will otherwise leave it mostly alone until the dividend drops into my account, which should occur sometime in the third week of March.
XLU short put exp Mar 15Sold the 58 strike on XLU yesterday afternoon.
It hit a weekly level and looked like it wanted to stop selling with small candles on the down move.
Kind of in between the higher time frame declining -1 sig and the rising -1 sig with the best inflection point on VWAP. It's that weekly rejection that I'm anticipating happening.
The strike is positioned at 58 which is a weekly level 2 down.
There's another one closer in at 59.31 that I'm thinking will play some defense.
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Symbol XLU
Open Date 1/18/2024
Put or Call Put
Expiry Date 3/15/2024
Short Strike 58
Long Strike 57
Price to Open 0.16
Min Width Multiple 2
Risk Ratio 5.25
Return on Risk 19.0%
Opening DTE 57
1 Day ROI% 0.33%
Max Annual ROI % 122.0%
Buyback to Close
Open to Roll
Closing % Cost on Opening Credit
Net Roll % on Opening Credit
Closing Date
Closing Price
Closed Margin ROI %
Closed Annual ROI %
$XLU: Utilities bottomed mid termVery nice low risk buy in AMEX:XLU here, upside is substantial vs risk.
The trend signal here predicts upside for 7 weeks or less, until $71.30 is hit, as long as the stop loss area is not reached (below $61.97 in this case).
You may use this sector ETF signal to research individual names that might have higher reward to risk or interesting fundamentals as well...
Best of luck!
Cheers,
Ivan Labrie.
XLU vs SPX. Good or bad?In the past, when we touch the bottom of the channel it marks a local top and we go down from here.
Will this scenario repeat?
XLU Utilities making a clear statement to Sellers.Utilities (XLU) almost hit this month the Higher Lows trend-line that has been holding for exactly 21 years (since October 2002) and immediately responded with a strong rebound that has already turned the 1M candle green. All this price action taking place in less than 2 weeks, which indicates considerable market movement.
Amidst of all that, it broke below the 1M MA100 (green trend-line) for the first time since the COVID crash (March 2020). If it manages to close the month above it, it will be a strong statement towards all direction that the sector considers this level a Support and possibly the end of the Inflation Crisis.
Watch closely and you will see that this and the COVID crises are connected with a Higher Highs trend-line, similar to how the DotCom and Housing crises where in the 2000s. Technically this is a straight Higher Highs trend-line that connects all Highs and places the last 21 years of market into a Mega Rising Wedge pattern.
The 1M RSI is on a Lower Lows trend-line, which indicates a natural deceleration of the trend but as long as it holds, it sustains it. And right now it is exactly on that trend-line.
Do you think this can be a strong message to sellers?
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XLU - Hold Utilities for ConsistencyUtilities are basically yesterday's tech stocks. In the late 1800s, the stock market ditched railroads and moved on - to utilities. In fact, there was a time where speculation ran rampant and panics were set off based on the movement of utility stocks.
Today, utilities are the opposite of tech stocks. They are basically the most consistent and boring stocks you can find on the market. The utility SPDR (XLU) yields 3.3% on dividends & is a very good composite of the utility sector. It has gone up 16% over the past 5 years, which pales in comparison to the S&P 500 (43%.)
The only reason you would want to hold onto them for the long term is that you can be absolutely sure they will stay & keep paying dividends as long as the US stays alive.
Right now, XLU (and pretty much all utility stocks) has come down sharply. It briefly reached the key range near $61 only to sharply rebound.
Because utilities are so consistent, they will generally crash and rebound pretty sharply.
In 2020, utilities crashed quickly & stayed down due to extreme volatility. When you have any short of sharp decline, utilities usually move with the trading day and sometimes even underperform.
In 2008, utilities crashed and stayed generally undervalued for a while.
In 2000, utilities also crashed and stayed undervalued for a while. This may have been due to the Enron scandal around the time.
If you are worried about 1970s-like stagflation, you will be pleased to hear that utilities outperformed during the time and generally stayed flat. (The only catch is that during a major crash, they are not completely immune and will probably go down.)
From a trading perspective, this is a great time to enter because you can be pretty sure that within a few weeks, XLU will rebound to as far as $74 within a matter of weeks.
From an investing perspective, this is also a great time to enter if you like utilities.
Often, people who are very bearish miss out on a lot of gains because they do not hold anything for the very long term.
Utilities are sort of the most defensive stock option, and I would recommend them if you think a super financial crisis is approaching.
You can hold them with minimal fear of stock declines. In fact, they stand to profit from the issues we may be facing - stagflation, energy crisis, etc. Plus, you get a steady flow of dividends that you can reinvest.
In normal conditions, utilities underperform - but overall, they outperform during bear markets.
You could even pick pretty much any regional utility. I did some chart analysis on DUK (Duke Energy) and found it had also bounced off a key support. Almost all the utilities have the same chart pattern, with the exception of troubled ones like PG&E.
In summary, I would go long utilities here if you don't know what to pick in this time. You can be almost certain buying for both the long and short term that utility stocks provide value.
