Sector Watch-Utilities (UTY)
Utilities (UTY): Neutral
It is trading above its…
20-day Moving Average: YES
50-day Moving Average: YES
100-day Moving Average: YES
Sentiment:Sentiment:The Schaeffer’s put/call open interest ratio (SOIR) percentile rank for the Utilities HOLDRs (UTH ?128.53) remains near its lowest level of the past year (translation: optimistic). Fund flows into the utility sector have been strong, indicating that the general investing public is perhaps becoming too optimistic toward these stocks.
Outlook:Despite last week’s breakout, utilities have lagged the market for more than two months. Yet optimism remains strong. Last week’s break above a two-month trading range has raised our outlook. But we remain cautious in light of the growing optimism. We thus move to a neutral rating.

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