fubar02

Time to Short the Utilities

For what it is worth, the author's fundamental argument is flawed. He states "(a) Note yields are declining (i.e. interest rates are rising)." When interest rates rise, note prices decline and their yield to maturity increases, not vice versa. His use of the word "yields" is incorrect. (From the technician).

Time to Short the Utilities

I submitted an article to Seeking Alpha on July 17th (three weeks ago) on this same issue when XLU was at 39.48 with exactly the same conclusion. It was rejected as being too technical as opposed to fundamental and was not accepted for posting. Once again, charts come in first.