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Bought Utilities on an upside breakout. Utilities have powered higher and out performed the S&P 500 by a good margin of late! This defensive sector has done really well of late. Is this break of support sending a message of a weak economy or a rotation to growth???
Game Plan….Am harvesting the gains in XLU due to a break of support.
cjk…Utilities have been a great defensive play in the past, yet if the markets really head south/break key support, I believe cap preservation will be more important than owning a “defensive sector.”
Chris – are you looking to get back in if old resistance/new support holds? For traders, XLU outperformed SPY in the 2007-2008 timeframe when the market was in the topping process with some nice rallies. Could it be the same story now with investors possibly looking for saftey/dividends in more defensive positions? cjk