Matt Cavallaro from Forbes reports “The inflation trade is beginning to wrap its arms around equity prices for the second consecutive summer. Rising unemployment hasn’t choked off the commodity rally yet, as blistering oil prices have more than doubled from their March lows around $30 a barrel to $73.  While risky energy stocks are entirely subject to volatile oil prices, utilities offer a low-risk way to capitalize on this summer’s impending inflation bubble.”

Matt Cavallaro continues “Trading with a strong correlation to the price of petroleum, defensive utility stocks moderate returns and losses that drastically swing cyclically sensitive sectors. Coinciding with oil’s rebound, the SPDR Utilities Select Sector ETF (amex: XLU) is up a modest 19% since March 9, compared with the S&P 500′s somewhat overdone 38% gain. From a valuation perspective within the framework of rising price pressures, the utility sector’s paced advance has left room for upside.”

We have included a snapshot of the top ten holdings listed within the ETF-XLU below:

Full Story: Here

Based on a pre-defined weighted trend formula for chart analysis, XLU scored +100 on a scale from -100 (strong downtrend) to +100 (strong uptrend):

	+10		Last Hour Close Above 5 Hour Moving Average
	+15		New 3 Day High on Friday
	+20		Last Price Above 20 Day Moving Average
	+25		New 3 Week High, Week Ending June 13th
	+30		New 3 Month High in June
+100		Total Score

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XLU