Sometimes you have to wait for the trade to come to you. Nearly eight weeks into the year, I entered my first long trade of 2016. As we all know the word this year has been volatility. Money has been rotating into defensives - bonds, metals and utilities. We saw the rotation beginning late last year.
Today, Chaikin Analytics gave a Money Flow buy signal on NiSource INC (NI). We tend to like Money Flow signals, we have had success bullishly and bearishly with Money Flow signals.
NI has maintained a strong trend, and belongs to the strongest sector in the market, Utilities. NI also offers a modest yield of 2.9%. NI has a Very Bullish PG (Power Gauge) and the Experts like it. Earnings are behind the company as well.
NI has been in an uptrend and above the Chaikin 200 day MA since late summer 2015, has had persistent positive money flow and relative strength agrees with the PG. Additionally, after the recent 3 day rally in the greater market, this utility is Oversold.
This is the best entry I’ve seen in months. Its everything I look for in long stock entries.... The Best stock in the Best sectors. The only thing I wish looked a little better were the Financials, but hey, nothing is completely perfect.... But this is pretty darn close to a prefect entry set-up. I entered this trade at the open today ( 2/18)
I will keep you posted on the outcome of this trade. As always I welcome comments and questions below!
Happy Trading!
Happy Trading!
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