{"id":21296,"date":"2023-10-20T07:30:49","date_gmt":"2023-10-20T11:30:49","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=21296"},"modified":"2023-10-20T07:30:49","modified_gmt":"2023-10-20T11:30:49","slug":"how-to-profit-and-earn-dividends-from-this-boring-sector","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/how-to-profit-and-earn-dividends-from-this-boring-sector\/","title":{"rendered":"How to Profit and Earn Dividends from this Boring Sector"},"content":{"rendered":"

It’s no secret the market loves tech stocks.<\/p>\n

The Technology Select Sector SPDR Fund (XLK) has rallied as much as 60% since bottoming in October 2022.<\/p>\n

Meanwhile, “boring” sectors like utilities have gotten a lot less love…<\/p>\n

For example, the Utility Select Sector SPDF Fund (XLU) bottomed around the same time as XLK. But after a brief rally of 22%, XLU sold off hard.<\/p>\n

To put things in perspective, XLK is currently up about 37% year to date. XLU on the other hand, is down over 15%.<\/p>\n

However, today I’ll explain why it’s time to start paying attention to boring old utilities.<\/p>\n

First, it appears the XLU has put in an important bottom. If it has, then a 15% rally could follow.<\/p>\n

Take a look at the chart of XLU below…<\/p>\n

<\/p>\n

\"Image\"<\/p>\n

Notice how the ETF is fighting hard to reclaim its 20-period moving average (MA) — the green line on the chart. That’s after reaching considerably oversold levels in the Relative Strength Index (RSI) at the bottom of the chart.<\/p>\n

Those two technical factors could make for a great mean-reversion trade.<\/p>\n

If XLU can stay above the 20-MA for a few trading sessions, that increases the odds that the ETF has bottomed.<\/p>\n

<\/p>\n

\n
\n

Free Trading Resources<\/strong><\/p>\n

Have you checked out Larry’s free trading resources on his website? It contains a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just click here<\/a> to check it out.<\/p>\n<\/p><\/div>\n<\/div>\n

<\/p>\n

If that happens, traders can set a target for it to rise to the $68-70 range. That would mean about a 15% move from current prices.<\/p>\n

Another attractive reason to buy beaten-down utility stocks is their average dividend yield. That yield is currently sitting around 3.57% for XLU.<\/p>\n

If the bullish setup in XLU works out, then traders will have a double benefit\u2026 They could make money on the coming rally as well as receiving a dividend payout in December.<\/p>\n

Happy trading.<\/p>\n

\"Signature\"<\/p>\n

Imre Gams<\/p>\n

<\/p>\n

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READER MAILBAG<\/h2>\n<\/div>\n

Will you be playing the “boring” rally in XLU?<\/p>\n

Let us know your thoughts – and any questions you have – at feedback@jeffclarktrader.com<\/a>.<\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

It\u2019s no secret the market loves tech stocks.<\/p>\n","protected":false},"author":55,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[76],"newsletter-type":[],"ticker":[],"class_list":["post-21296","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-imre-gams"],"acf":[],"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/21296","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/55"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=21296"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/21296\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=21296"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=21296"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=21296"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=21296"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=21296"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=21296"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=21296"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}