Because certain sectors like Materials, Industrials (both of which I am short) and Financials (why am I not short?) tend to benefit when bond yields are rising. Others, like the Utes and Reits/RE tend to do better when yields are falling. There are plenty of qualifiers and conditions within that broad brush stroke, but today da Utes (which I am long) are conspicuous in their … Continue reading Why Pay Attention to Sector/Yield Relationships?
A couple weeks ago in NFTRH 434 we introduced this chart, representing some of the more counter-cyclical items vs. the S&P 500 (SPY). I already own some gold miners and long-term Treasury bonds (TLT) and noted an interest in Utilities (XLU, since added per NFTRH 435). Taking a look at the nominal daily chart of XLU, this item added as a balance to long positions … Continue reading NFTRH; Pictures From the Counter-cycle (Utes, T bonds & Gold)
This post is being sent to the entire list (as opposed to NFTRH+ email opt-ins) because I need to check the ‘+’ list for accuracy before using it, and have not had time thus far. Also, a play on the Utes is a play on interest rates, which is a macro indicator. The daily chart of XLU shows a clear breakout above the August and … Continue reading NFTRH+; Utilities
The rise in short-term bond yields seemed to result from everybody getting in line and giving the FOMC its due respect (hey, they are going to raise the Funds rate… some day!). Here is the 3 mo. T Bill and the 1 year yield as of yesterday (weekly chart). But the Utilities (which generally do well in a declining rate environment) were not buying it … Continue reading Utes Not Buying It
The Utilities index was shown for subscribers in NFTRH 334 before it had broken out of its bullish looking Wedge. The index had drifted down to support and if one was bullish on T bonds (bearish on interest rates) one might take a trade on a Utes bounce or rebound. The ETFs noted were VPU and XLU. So far so good. Subscribe to NFTRH Premium … Continue reading Da UTES Break Da Wedge