Seeking Alpha

Utility charts looking good to technician

  • The Select SPDR Utilities ETF (XLU +0.4%) has already had a nice run this year - up 9% from an early January low - but technician Michael Kahn sees more gains ahead, noting it popped out of an 8-month trading range last week  and money is flowing in (based on a gauge measuring volume on up days vs. down days) for the first time in nearly a year.
  • Stocks such as Public Service Enterprise (PEG +0.5%) and CMS Energy (CMS -0.1%) are mirroring the ETF's chart, but Kahn sees better opportunities in names closer to 52-week lows. Of note in this category are PG&E (PCG +0.9%) - just out of a trading range and above its 200-day moving average for the first time since the summer - and Southern Co. (SO +0.1%). After moving sideways for six months, Southern has rallied to the top of its range and is pausing at its 200-day moving average. Any continued strength would break both the trading range and the 200-day.
  • Related ETFs: XLU, IDU, VPU, NLR, GRID, JXI, NUCL, DBU, IPU, UPW, RYU, PUI, FXU, SDP, FUTY, PSCU, AXUT, UTLT
Comments (5)
  • mjtroll1
    , contributor
    Comments (671) | Send Message
     
    bold call.. xlu/spy pair testing 200dma ..has been in bear trend since june of last year.. by implication predicting lower rates
    21 Feb, 04:33 PM Reply Like
  • Jubal04
    , contributor
    Comments (104) | Send Message
     
    If you didn't buy SO when it was below $41, you have probably lost your chance. With any good news it could see $50 before it sees $41 again.
    21 Feb, 04:46 PM Reply Like
  • newnnly
    , contributor
    Comments (239) | Send Message
     
    At some point SO will begin to move up again in anticipation of completed projects. Are we beginning to see the price movement yet?
    22 Feb, 11:07 AM Reply Like
  • bgold1955
    , contributor
    Comments (1930) | Send Message
     
    All mentioned have > 20 p/e. Why?
    22 Feb, 04:54 PM Reply Like
  • skip234and1@gmail.com
    , contributor
    Comment (1) | Send Message
     
    with the winter we are having this year i think all electric and gas companies will be doing well
    25 Feb, 10:48 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio:

|