Shares of the Utilities HOLDRS Trust (NYSE: UTH) rallied on Tuesday, showing some significant strength.



Chart Courtesy of StockCharts.com

There is nothing more exciting for a utility company than easy money. That's because utilities live on borrowed money. And the easier it is to borrow, and the lower the cost, the more they can borrow in order to expand and finance their business.

That's why a breakout in the utilities should be considered a positive for the stock market overall, until proven otherwise. UTH is still some 30% off of its 2008 highs, but has fought its way back to just below 100.

And for investors looking for income, this ETF spins off more dividends than you can shake a stick at. Since September 2008, the ETF has delivered 66 income distributions.

It's a good idea to watch the action in UTH.

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