Sectorbreadth Analysis: Utilities and Energy Leading
The summer rally has proven to be a boon for Energy and Utility stocks. According to my #sectorbreadth analysis, both Utilities ($XLU) and Energy ($XLE) are in covered call 'sell' territory, with Momentum, Trend and Volume indicators all above 90% bullish territory. The September $44 strike call for $XLU traded at $0.65, and the September $102 strike call for $XLE at $2.20.
The only sector cut from the pack is Consumer Discretionary ($XLY). While not in strong buy territory (I like to see all my breadth indicators below 10% for that), it may offer itself as a bargain bin opportunity for the summer on rotation out of overheated Energy and Utility stocks.
You can access the interactive sectorbreadth chart here.
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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com.
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The only sector cut from the pack is Consumer Discretionary ($XLY). While not in strong buy territory (I like to see all my breadth indicators below 10% for that), it may offer itself as a bargain bin opportunity for the summer on rotation out of overheated Energy and Utility stocks.
You can access the interactive sectorbreadth chart here.
Accepting KIVA gift certificates to help support the work on this blog. All certificates gifted are converted into loans for those who need the help more.
All Contributions Welcome - Thank You!
Follow Me on Twitter
Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com.
You can read what others are saying about Zignals on Investimonials.com.
JOIN ZIGNALS TODAY - IT'S FREE!