Paying attention to the Power Gauge sector trends in our Market Analysis section of the site? Look at the move Utilities has made in the past couple of weeks.
With so few sectors showing bullish/very bullish underlying stock strength to begin with, we're really surprised that the S&P has managed to even hang in its sideways trend. The fact that defensive playbook staple, Utilities, have powered to the top of the Power Bar differentials strengthens the case for the month's long sideways market consolidation finally resolving to the downside. For our long-only Chaikin Power User portfolio, strong consideration will be given to entering Pacific Gas & Electric Corporation this week. Despite being overbought in the short term, PGE's Very Bullish Power Gauge rating and Relative Strength reading are in agreement, with strong Money Flow and a price pop above the long term Chaikin trend all having occurred in the space of just a few trading days. Despite a recent run-up, the dividend remains healthily above 3.3%.
For demonstration purposes, we'll acquire the stock on any price weakness as our Trade of the Week. But the December, $50 put is selling for $1.00, and that's the more likely real world play we'd make for acquiring the stock prior to the ex dividend date.
For demonstration purposes, we'll acquire the stock on any price weakness as our Trade of the Week. But the December, $50 put is selling for $1.00, and that's the more likely real world play we'd make for acquiring the stock prior to the ex dividend date.
RSS Feed