“That Feeling Something Bad Is About to Happen | WAYT?”
Avoid buying XLU dip; valuation is expensive relative to history and yield is uncompetitive against Treasuries, leading to dead money or further decline.
This is a State Street Utilities Select Sector Spider ETF or XLU. It's sort of shorthand for how the sector is doing. I'm going to tell you, I will not buy this dip. I don't like it.
I don't like what it represents. I don't like how it acts. It's in no man's land.
so to make the case I'm making is not every dip is buyable. I don't like this one. I think at best you have dead money and at worst this could get way worse.