Watch the Utilities here! $XLU

The utility sector, specifically the XLU ETF, is showing strength by breaking out to new highs, even with low trading volume before Thanksgiving. The speaker believes this sector is a positive influence on the overall market and suggests watching for a potential pullback to the 8-day EMA as a potential entry point before potentially continuing higher.

Utility Sector Strength

• 00:00:05 The utility sector, represented by the XLU ETF, is breaking out to new highs, indicating strength even with low trading volume. This positive performance is occurring while the overall market is also near new highs, suggesting the utility sector is a significant factor in the broader market's upward trend. The speaker believes the sector is playing a more prominent role than the 'Magnificent 7' in market performance.

XLU Trading Strategy

• 00:01:25 The speaker recommends watching the XLU ETF for a potential pullback to the 8-day exponential moving average (EMA). If the ETF bounces off this EMA, it could provide a good risk-defined entry point for investors. The speaker suggests defining your risk at this level and then ideally the stock will continue to follow the broader market higher. The speaker advises keeping an eye on this sector as a possible investment opportunity.