Utilities >> The big day is easily explained when you look at the weekly chart. <<
Hmmmmm. Now I subscribe to TA, but I think the tax bill passage in the house and senate extending dividend taxation at 15% through 2008 had a little more impact.
While many of the utilities have run in the near term, many are still well below "historical" levels. As such they have dividends and good capital appreciation potential looking out 1-2+ years.
I'm not so sure you'll get your near term double top.
In the present bond/interest environment, 4-6%+ payouts look very good. Mutuals funds that specialize in just div paying stocks are going to look very attractive going forward. Minimizes the downside of owning individual issues, but you still get the nearly free tax payout.
Long TE, CNP and RRI. Favorite is TE for the short term (TA, short interest and dividend ratio), CNP for "surest" 50%-100% move over the next 1-2 years (sale of TGN, massive debt reduction next year), and RRI for the long term.
By the way, have read your posts for a long time and have a great respect for you, just disagree on your opinion here.
