Trade Ideas Newsletter 03/07/2017


SRE is at the start of a significant breakout

Based on the preceding analysis in SRE, traders should determine that their account can handle increased risk from a new position. Also be sure that SRE is not too correlated with your existing position. Lastly, excellent traders always check how a new addition relates to not just their overall account, but the prevailing market action as well. For example, check the S&P 500. Is it trending up or down recently? Has it recently exceeded key resistance or support levels? Be sure to align your trading actions on SRE with the overall market so you are not swimming against the tide.

CHART

Currently the calculated sentiment levels, evaluated by Traders For Wealth, have shown an increasingly positive bias toward SRE. Also, the price action in SRE has been moving on up. This is a strong sign for a potential upside breakout. Traders should view this as a bullish trade and make sure it aligns with the overall market mood, and their current positions.

Sempra Energy (SRE)

Sempra Energy is a holding company. The Company’s principal operating units are San Diego Gas & Electric Company (SDG&E) and Southern California Gas Company (SoCalGas); Sempra International, which includes Sempra South American Utilities and Sempra Mexico segments, and Sempra U.S. Gas & Power, which includes Sempra Renewables and Sempra Natural Gas segments. Sempra Mexico segment owns and operates a natural gas-fired power plant and interests in a wind generation facility in Baja California, Mexico; natural gas distribution systems in Mexicali, Chihuahua, and the La Laguna-Durango zone in north-central Mexico; natural gas pipelines between the United States border and Baja California, Mexico and Sonora, Mexico, and the Energia Costa Azul LNG regasification terminal located in Baja California, Mexico. Sempra Mexico also owns interests in a joint venture that operates several natural gas pipelines, and propane and ethane systems in Mexico.

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