FINANCIAL ICEBERG
Always consider hidden risks
​
TECHNICALS
The Situation


​​​​One of the best defensive sector performance since the beginning of the year ​have been ​the ​
​Utilities Sector as the reach for yield is still on...

The XUT ETF (iShares S&P/TSX Capped Utilities Index ETF) reached almost a new high ever
​on July 22 2016 as desperate investors looking for safety and reach for yield at the same time.​
Closing price on July 22 was 22.72. ​ ​​(See first chart below - Ellipse).

​The Canadian Utilities Index ETF XUT is testing a Major Resistance Trendline from a rising wedge that started back since May 30 2011. ​​(See first chart below - Blue Trendline - Ellipse). ​All that within a higher trading Volume for the XUT ETF. ​(See first chart below - Bottom Blue Area - Ellipse)

​And the Canadian Utilities Sector XUT are outperforming also the Canadian SPTSX60 ​​​(iShares S&P/TSX 60 Index ETF) (Ratio of XUT over XIU) since April 22 2016. ​Few of us realize that we broke ​​a Major Resistance Trendline on a relative basis (Ratio of XUT over XIU)
​on December 29 2015 that started back since May 2012! (See Second chart below - Red Trendline).

But the most interesting factor is​​​​​​ that the interest rates sensitive assets are outperforming lately the SPTSX60 Index. And more surprising, the Canadian Utilities Index (XUT) is out performing Canadian long bonds (​iShares Core Canadian Long Term Bond Index ETF (XLB)) since June 21 2016.  ​(See third chart below - blue line).

And again, few of us realize that we broke ​​a Major Resistance Trendline on a relative basis (Ratio of XUT over XLB)  that started back since May 2011! (See third chart below - Blue Trendline - Ellipse).






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Cdn Utilities Sector ETF XUT: Near Breakout?   $XUT, $XLB #xiu #xlb #dividends



Daily RATIO
(Candles)
Canadian Utilities Sector SPDR ( iShares S&P/TSX Capped Utilities Index ETF)​
over​
​Canadian Long Bond XLB (iShares Core Canadian Long Term Bond Index ETF) 



Cdn Utilities Sector ETF XUT: Near Breakout?

​July 25 2016 ( From TradingView )​








Daily RATIO ( Candles ) 
Canadian Utilities Sector XUT (iShares S&P/TSX Capped Utilities Index ETF)​

​over

Canadian SPTSX60 XIU (iShares S&P/TSX 60 Index ETF)​


Canadian Utilities Sector XUT (iShares S&P/TSX Capped Utilities Index ETF)​
Daily Price ( Candles )
20 DMA ( Yellow Line )​
50 DMA ( Red Line )
​200 DMA ( Green Line )


Financialiceberg.com


Financialiceberg.com


Financialiceberg.com