Mike Larson | Editor-in-Chief
Is it time for utility stocks to shine? Two experts who joined me for this week’s MoneyShow livestream event said...YES! But what do the charts show?
Jeff Hirsch, editor-in-chief of The Stock Trader’s Almanac, said utilities could help investors keep their heads above water during this “worst six months” period for stocks. He sees equities struggling later in the summer and early fall.
Meanwhile, Kevin Mahn said he likes utilities for their attractive combination of relative safety and exposure to the AI power demand theme. The chief investment officer at Hennion and Walsh noted they “aren’t your father’s utilities” – and look tailor-made for this market environment.
State Street Utilities Select Sector SPDR ETF (XLU)
Data by YCharts
Now, let’s look at the MoneyShow Chart of the Day. It shows the State Street Utilities Select Sector SPDR Fund (XLU) going back one year. I’ve included the 50-day and 200-day moving averages, as well as RSI and volume.
While it’s not as DEFINITIVE a chart as others I’ve seen, it is encouraging. The XLU has been gradually stair-stepping higher, with each upside breakout followed by consolidation, basing, and a fresh leg up.
We haven’t seen any bearish 50-day/200-day crossovers, and we might be on the cusp of another upside breakout. Should XLU take out the 50-day on heavy volume, then close above $46, I’d expect to see a move into the lower $50s next.
Want to get the full case for utilities from Jeff and Kevin? Not to mention discover which sector stock BOTH named as a top pick? Then watch the livestream replay on our MoneyShow X feed here.
Editor’s Note: I will be out of the office after today until Tuesday, June 30. The Trading Insights newsletter will resume publication on Wednesday, July 1.
If you’re tempted to double down on a losing position, Jonathan Hoenig has one word of advice: DON’T! In this MoneyShow MoneyMasters Podcast excerpt, the portfolio manager at Capitalistpig Asset Management explains why adding exposure to a falling stock is one of the fastest ways to go broke. He also outlines what you should do instead.
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With efforts towards a lasting peace ongoing, we could see some fresh pressure on crude oil prices. But the downside could be limited with the bulk of the move already having taken place. WTI futures have been falling for several weeks now, and understandably, prices are becoming a bit oversold, notes Fawaz Razaqzada, technical analyst at TradingCandles.
👉 TICKER: STX
