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Bullish Case for Utilities Stocks | Capitulation Signals a Likely Bounce
There is a bullish case for utilities stocks. There's strong capitulation happening that typically means a bounce is near:

Selling in stocks is normal. However, capitulation is rare and often indicates oversold conditions. Luke walks you through the sell signals we are seeing and provides a historical study that points to upside.

The Utilities Select Sector SPDR Fund $XLU tends to rally hard after downdrafts like this. Keep in mind this is not personal advice of any kind. We want to help you learn how to invest, and using data can help! Focus on the opportunity.

Joshua Simka's avatar
Do utilities tend to be cyclical? I've never bought any funds or individual utility stocks. Are they suitable for a long term buy and hold?
MAPsignals's avatar
@tomato like any group, there are a few monster winners that have growth their dividend year after year. Typically they are suitable for defensive investing.

Going back many decades, they were the growth stocks as they built out infrastructure all over the US



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