As for the utilities sector, specifically the XLU group, we are seeing a significant decline, which clearly indicates oversold conditions. So, as you can see, the Relative Strength Index (RSI) is at 25.
For bold investors, you can make a quick speculative move on some stocks that may later come out of this oversold condition, but are certainly among the weakest sectors in the group.
Uh but I want to move uh to your next one, Don. You've got the utility sector ETF from State Street here as your second pick. So how are you looking at utilities?
Yeah, this is actually going to be a bullish trade, but it's it's bullish for all the right bearish reasons, if you will. Look, tech starts to sell off at all. And it has had an amazing run.
I believe that we're going to see a rotation back into XLU.
This is a State Street Utilities Select Sector Spider ETF or XLU. It's sort of shorthand for how the sector is doing. I'm going to tell you, I will not buy this dip. I don't like it.
I don't like what it represents. I don't like how it acts. It's in no man's land.
so to make the case I'm making is not every dip is buyable. I don't like this one. I think at best you have dead money and at worst this could get way worse.
The State Street Utility Sector Spider ETF or XLU tracks the utility sector responsible for the power generation required by AI infrastructure.
That XLU chart is some ugly. I thought you were supposed to be safe. uh in not I don't really think that's the case in uh interest uh rate raising environments because they're so uh dependent on on rates being low.
