Buy Signals in Utility Stocks

January 21, 2012, 2:55 pm

I used the Gigascanner free chart-based stock scanner to find stocks generating Climax Low buy signals, sorted by Market Capitalization, without any other conditions or filters. There were 47 stocks putting out Climax Lows altogether - not exactly a huge wave which would indicate a significant market turning-point, but that's not needed for a given buy signal to work reliably. The top half of the list is of interest, since the big stocks will tend to show less volatility than the smaller ones, and also the buy signals are known to be more accurate, and consistent.

Interestingly, about half of the stocks (in the top half of the list) were Utility stocks, indicating a general trend within the group. These are stocks involved with oil and gas exploration and production, and electrical power generation. Some of them are paying a very high dividend yield. Now might be an excellent time to swing a portion of your portfolio into a basket of Utility stocks. Shown below are charts for some of the best-looking ones, including those killer blue Climax Low buy signals of which we speak.

Dominion Resources - D

annotated stock chart for Dominion Resources