Registered: 1101777014 Posts: 4,528
Reply with quote #1
Quietly closed at new all time highs today.
Just for the record, this would not in any way, shape, or form, be consistent to a possible Dow Theory sell signal in which seems to be a hot topic of late. And even if we disregard the leadership of this interest rate sensitive sector in this same theory, under the guidelines laid out by Charles Dow over 125 years ago, there still hasn't been a sell signal of any degree at this time. Fib (2 Charts) __________________ Dave's LinkedIn Profile Technical Watch Twitter Page Technical Watch Facebook Page "As for it being different this time, it is different every time. The question is in what way, and to what extent" - Tom McClellan "An economist is someone who sees something happen, and then wonders if it would work in theory" - Ronald Reagan "What we see depends mainly on what we look for" - John Lubbock "The eye sees only what the mind is ready to comprehend" - Henri Bergson “Answers are easy; it’s asking the right questions which is hard” - Dr. Who - 1977 "You know the very powerful and the very stupid have one thing in common - they don't alter their views to fit the facts, they alter the facts to fit their views (which can be uncomfortable if you happen to be one of the facts that needs altering)" - Dr. Who - 1977
Registered: 1106676764 Posts: 28
Reply with quote #2
Does this development not scream "flight to safety", i.e., high yielding dividend-paying stocks as compared to treasuries? I checked DP for this sector's history in the '00 to '02 bear market, and it indeed corrected nearly 50% in that time frame. However, I question whether this sector was suffering from "pin action" from Enron in that same time frame. I interpret this sector's recent performance as cash seeking increased return over treasuries. At least, that's my fundamental understanding of what we're seeing in a technical sense. I'd be very interested to see how the utilities performed in bear markets where treasury yields were low compared to utility yields. Continued thanks for your thoughts. bnick