From time to time in markets, a single area or theme in the market gets "so embraced", "so believed in", "so relied on" that the theme in question becomes "overbought"...
"expensive"...
"full". Such is the case with the S & P 500 Utilities sector, by our work. The chart below of the Utilities Select Sector SPDR ETF (XLU) since the 2009 Financial Crisis low, tells the tale.
At present, XLU is as "overbought" and "expensive" as at any time since the 2009 low. "Overbought"..
. as determined by 1) how far above the 150-day moving average (blue line) XLU is trading and, 2) by weekly RSI price oscillator (bottom panel of chart). "Expensive".
.. as determined by P/E ratio (currently at 24.
49- an all-time high). Reduce longs, trim, sell calls — do something, before — as the expression goes — someone does it for you. -Carter Braxton Worth For actionable recommendations via email and live nightly videos become a member at worthcharting.
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