Utility stocks have seen a big internal surge

The past few days have seen U.S. stocks chop up and down. One of the few exceptions has been the utilities sector, which on a total return basis reached the highest level since the March crash. 

As a result, the percentage of stocks in this sector above their 50-day moving averages surged from less than 15% to greater than 78% within 2 weeks.

Utility stocks above 50 day moving average

We've seen repeatedly in the past that a staid sector like utilities does not tend to do well in the short-term after big bouts of positive momentum. There are some signs of that here, and shorter-term returns have been mostly weak as noted above. Longer-term, however, the bias was solidly higher.

This is an abridged version of our recent reports and notes. For immediate access with no obligation, sign up for a 30-day free trial now.

We also looked at:

  • More detail on the internal strength in utilities
  • Despite the gains, ETF traders are pulling money from funds like XLU
  • Corporate insiders have been very busy in utility stocks

The post titled Utility stocks have seen a big internal surge was originally published as on SentimenTrader.com on 2020-10-08.

At SentimenTrader.com, our service is not focused on market timing per se, but rather risk management. That may be a distinction without a difference, but it's how we approach the markets. We study signs that suggest it is time to raise or lower market exposure as a function of risk relative to probable reward. It is all about risk-adjusted expectations given existing evidence. Learn more about our service , research, models and indicators.

Follow us on Twitter for up to the minute analysis of market action.

Not ready to signup up for a free trial yet?

Signup for our Daily Lite email to receive highlights of our daily report, research and studies.

Follow us on Twitter:

Subscribe to our Youtube Channel:

RSS Feed

Subscribe to the Blog RSS feed