Update on utilities versus auto retail trades

30 October

On 25 September, I showed that some of the long term rotations for utilities and against auto retail stocks had been signaled by a moving average crossover. The three trades are:

Autozone (AZO) v Nextera Energy (NEE)
O’Reilly Automotive Inc. (ORLY) v Nextera Energy (NEE)
Autozone (AZO) v Edison International (EIX)

The crossover remains in place but last week there was a move against these pairs. I will move the stop loss on these three signaled trades to break even.

Should that be triggered, we would have to wait for another set up to enter but that’s better than letting a profit run into a loss.