From time to time in markets, a single area or theme in the market gets “so embraced”, “so believed in”, “so relied on” that the theme in question becomes “overbought”… “expensive”… “full”. Such is the case with the S & P 500 Utilities sector, by our work. The chart below of the Utilities Select Sector SPDR ETF (XLU) since the 2009 Financial Crisis low, tells the tale. At present, XLU is as “overbought” and “expensive” as at any time since the 2009 low. “Overbought”… as determined by 1) how far above the 150-day moving average (blue line) XLU is trading and, 2) by weekly RSI price oscillator (bottom panel of chart). “Expensive”… as determined by P/E ratio (currently at 24.49- an all-time high). Reduce longs, trim, sell calls — do something, before — as the expression goes — someone does it for you. -Carter Braxton Worth For actionable recommendations via email and live nightly videos become a member at worthcharting.com . DISCLOSURES: (None) All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
