Below is a note from Hedgeye CEO Keith McCullough on why we're adding Utilities (XLU) to the short side of Investing Ideas today:
"With yet another all-time closing high in the cards for the US stock market, we're going to register more immediate-term TRADE overbought signals in macro. One that I have been waiting on, patiently, is Utilities (XLU).
Provided that we continue to be right on US growth and inflation accelerating, I think long-term bond yields continue to make a series of higher-lows and higher-highs.
If that plays out, I expect Utilities (XLU) to make a series of lower-highs and lower-lows."