Utilities

Intermediate Trade: XLU Real Money Pro($)

I prefer a bearishly biased, calendar diagonal call spread.
The company's stock price has indeed fallen, but it's the dividend that is compelling.
The stock shows a bearish divergence, which can at times foreshadow a correction.
But perhaps the economy is a bit like the Washington gridlock.
Investors are demanding "safe" low-beta stocks like utilities. But it's better to take profits now.
They are too expensive for what their growth prospects are. 
The group has performed like a champ this year as investors go for yield and a safe haven amid market uncertainty.
First-quarter performance was a mixed bag, with a strong earnings beat clouded by rising project costs.
They're one of the interesting underlying situations of this rally.
We can see that price momentum has been weakening the past three weeks.

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