We have been concerned about the leadership the last couple weeks and when we see a defensive group like utilities outperforming, concern sets in. The XLU as of this writing this morning is up 2.8% thus far for the week and perhaps the rough patch which began back in late January for this ETF could be finishing. It was not long ago that many ran for the exits from this sector as the possibility of interest rates rising were preached incessantly. That may still be the case, but for now many in the group are acting well. Here is a name we profiled in our Thursday 6/11 Game Plan.
Stocks that can be bought after bullish inverted hammers are SCG. SCG is a utility play lower by 17% YTD and 2% over last one year period and sports a dividend yield of 4.3%. The group as a whole was the best performing sector in 2014 and with the speculation of interest rates hikes in the foreseeable future the group has been under pressure creating nice opportunities in my opinion. Since the bearish shooting star pattern the week ending 1/30 SCG has lost ground 12 of the last 18 weeks, with several large weekly losses of 6.5 and 5.2% the weeks ending 3/6 and 2/6. Tuesday produced a bullish inverted hammer candle and enter here near the round 50 handle.