Utilities Select Sector SPDR (XLU) has surged on yesterday’s Fed meeting news. Utilities are specifically sensitive to interest rates, so utilities continue to perform well in any falling interest rate environment.
I suspect there’s much more to go in XLU and other utility trades. But for now, I want to take our profits and run. It was a little sooner than I was hoping for, but I’m certainly not going to complain about winning.
Here, I’d like to close the trade for a price of $1.15. This will give us a $210 profit on a minimum order. This is a nine-day 58% return for a 2333% return annualized.
We may be closing a few winners today so keep an eye out.