Hurricane Ike didn’t just ravage southern Texas – utilities exchange traded funds (ETFs) are feeling the pain this morning, too.
The storm this weekend caused a wide disruption in power and tore through homes, streets and public infrastructures, reports the Associated Press.
Electrical utilities, and the companies which provide them, has a good week last week, but are related ETFs due for a short circuit?
A slowdown within electrical utilities is evidenced by falling momentum and volume indicators, and the rally has been signaled to an end by transitioning into bear market territory, as technical analysis is showing, reports Michael Kahn for Barrons.
- Energy Select Sector SPDR (XLU), down 16.1% year-to-date
- iShares S&P Global Utilities Sector Index (JXI), down 20.5% year-to-date
- iShares Dow Jones US Utilities Sector Index (IDU), down 16.4% year-to-date
- Vanguard Utilities (VPU), down 15.7% year-to-date
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.