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Wednesday, April 19, 2017 11:02:00 AM
Utilities (XLU) moving into leading quadrant, what are the strongest (and the weakest) stocks for this sector?
By Julius de Kempenaer | April 19, 2017
The Relative Rotation Graph above holds the stocks that, together, make up the Utilities sector index (XLU).
The keen observer may notice that there is one stock, NRG, positioned in the "gutter" of the chart. This is done on purpose as NRG is so far out to the right of the graph that it compresses all other stocks if I would include it, properly positioned, on the RRG.
I will have a look at NRG further down in this post.
The stocks inside the weakening and the lagging quadrant can fairly easily be identified. Same for improving. The leading quadrant is a bit more cluttered which makes it hard(er) to determine the individual ticker symbols. The best way to analyze an RRG like this is to click on one of the ticker symbols in the table below the chart and then "step" through the universe. This will "highlight" the selected stock while the others are dimmed so you can quickly identify the rotation of that single stock among its peers.
Summary
• Utilities sector pushing into leading quadrant
• NRG rotation detached from other utility stocks
• EXC not able to break resistance, rotating into lagging quadrant
• SCG already snapped lower on RS, waiting fro a break in price now
• XEL breaking higher on both price- and relative graphs, solidly moving inside leading quadrant
• PNW confirming strong relative trend by rotating back into leading quadrant from weakening
• ETR inside improving quadrant but heading towards leading; needs to take out overhead resistance.
From a sector perspective
Before diving into the components of the Utilities sector, I would like to take a quick look at the sector as a whole on the Relative Rotation Graph holding all S&P sectors.
It is clearly visible that XLU is leading a group of four sectors that is currently still inside the improving quadrant but rapidly heading East towards the leading quadrant.
XLU (Utilities) and XLV (Health Care) are leading this group, closely followed by Consumer Staples (XLP) and Real-Estate (XLRE). All four sectors can be classified as "Defensive" which builds a case for a "risk-off" approach to the market as a whole.
The one that stands out. . .
http://stockcharts.com/articles/rrg/2017/04/utilities-xlu-moving-into-leading-quadrant-what-are-the-strongest-and-the-weakest-stocks-for-this-sector.html
• DiscoverGold
By Julius de Kempenaer | April 19, 2017
The Relative Rotation Graph above holds the stocks that, together, make up the Utilities sector index (XLU).
The keen observer may notice that there is one stock, NRG, positioned in the "gutter" of the chart. This is done on purpose as NRG is so far out to the right of the graph that it compresses all other stocks if I would include it, properly positioned, on the RRG.
I will have a look at NRG further down in this post.
The stocks inside the weakening and the lagging quadrant can fairly easily be identified. Same for improving. The leading quadrant is a bit more cluttered which makes it hard(er) to determine the individual ticker symbols. The best way to analyze an RRG like this is to click on one of the ticker symbols in the table below the chart and then "step" through the universe. This will "highlight" the selected stock while the others are dimmed so you can quickly identify the rotation of that single stock among its peers.
Summary
• Utilities sector pushing into leading quadrant
• NRG rotation detached from other utility stocks
• EXC not able to break resistance, rotating into lagging quadrant
• SCG already snapped lower on RS, waiting fro a break in price now
• XEL breaking higher on both price- and relative graphs, solidly moving inside leading quadrant
• PNW confirming strong relative trend by rotating back into leading quadrant from weakening
• ETR inside improving quadrant but heading towards leading; needs to take out overhead resistance.
From a sector perspective
Before diving into the components of the Utilities sector, I would like to take a quick look at the sector as a whole on the Relative Rotation Graph holding all S&P sectors.
It is clearly visible that XLU is leading a group of four sectors that is currently still inside the improving quadrant but rapidly heading East towards the leading quadrant.
XLU (Utilities) and XLV (Health Care) are leading this group, closely followed by Consumer Staples (XLP) and Real-Estate (XLRE). All four sectors can be classified as "Defensive" which builds a case for a "risk-off" approach to the market as a whole.
The one that stands out. . .
http://stockcharts.com/articles/rrg/2017/04/utilities-xlu-moving-into-leading-quadrant-what-are-the-strongest-and-the-weakest-stocks-for-this-sector.html
• DiscoverGold
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Your Due Dilegence is a must!
• DiscoverGold
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