Industry Group Strength: Electric Utility Stocks

Keep an eye on Electric Utility stocks as they are showing impressive strength despite the negative market conditions. I will post a few strong stocks (and charts) later on today.

AYE, CEG, CNL, DUK, GXP, HE, LNT, NU, SCG, SO, SRP, WEC

Traditionally, utilities may have been regarded as boring, slow investments. In today's highly volatile and negative market conditions, utilities provide a short term haven for both traders and investors looking to park their cash until things clear up.

SO

WEC

As you can tell from the charts, both SO and WEC are bottoming out. I decided to not post all of featured stocks charts because they all happen to look quite similar. This is due to an over all sector/industry move which has all (at least most of) the electric utility stocks bottoming out. Utility stocks are defensive stocks and they usually receive institutional love when the market is in a consolidation phase. Big banks and money managers use them as defensive investments. Other defensive stock groups include the various food industries and medical hospitals, among others.