In his "No Huddle Offense" segment of Mad Money Tuesday night, Jim Cramer reminded his viewers that all dividends are not created equal. He said the market's gotten picky about dividends as of late, trusting very few companies while panning lots of others.
Cramer said the markets love the non-retail REITs and also the utilities, but that's about it. The markets are looking for steady companies they can trust, Cramer concluded, and that means REITs and utilities and little else. So let's take a look at the (XLU) -- the popular Utilities Select Sector SPDR ETF.
In the daily bar chart of XLU, below, we can see an uptrend in force from late December. Prices are above the rising 50-day moving and the bullish 200-day moving average line.
The On-Balance-Volume (OBV) has been rising with the price action and tells us that buyers of the XLU have been acting more aggressive with heavier volume being traded on days when the XLU has closed higher.
The Moving Average Convergence Divergence (MACD) oscillator, in the lower panel, is above the zero line and poised to turn up to a fresh outright buy signal.
In the weekly bar chart of the XLU, below, we can see that the current advance has been ongoing from early 2018. Prices are above the rising 40-week moving average line.
Both the OBV line and the MACD oscillator are bullish.
In this Point and Figure chart of the XLU, below, we can see an upside price projection or target of around $73.
Bottom-line strategy: The price chart of (and the yield) of the XLU continue to look attractive. Stay long and consider adding to longs.
