Utilities were the biggest gainers on the day as the Fed Beige book helps large cap stocks close in the green. The Dow closed up 24 points just inching out gains. This market is in overbought territory, but we have seen this movie before. We could very well see this market plow higher for another week and leave many behind. It is prudent to take profits on the way up, but to bail because the market may fall is not a wise move. Trading with fear will only lead to inferior results. We want outsized gains! Play it smart and check your emotions at the door.
Utilities continue to gain strength as the hunt for yield continues. Perhaps the group is seeing this relative strength from those looking to hide in historically low beta names. Whatever the reason the group continues to push higher. Not much excitement in the Utility sector. However, they are leading the market higher and we cannot deny the push higher.
The issue at hand will be whether or not you try to do too much. We see it so many times where traders simply get the “hero” complex and think they can force trades thinking they know better. Do not get out ahead of your skis and risk your hard earned capital. Stay focused and disciplined.
