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The bulls have had quite a run, haven’t they? My thesis for a Q1 peak came to fruition. My thesis for a Q2 low came to fruition. I think my thesis for all-time highs in Q3 will come to fruition, but that may be happily earlier than I expected as the Dow Industrials, S&P 500 and Nasdaq 100 are just one big day away.

Longtime readers know I hate to follow the masses as they are usually but not always wrong, especially at extremes. When the media accepts a new market trend, that trend is close to correcting and punishing the latecomers. People just don’t learn. Rinse and repeat.

A month ago, you couldn’t find but a few bulls on the boring and stodgy utility sector. I was chomping at the bit to buy on a move to 820 or lower. That did not happen and I missed one the great short-term moves in years. People mocked my plan and anyone else in the media who spoke positively about the sector.

Fast forward to yesterday and the media was having a love affair with anyone and everyone who would publicly speak positively about the utes as they are known, not to be confused with the youts in My Cousin Vinny with Joe Pesci. “What’s a yout”, asked Fred Gwynn playing the judge. Pesci was referring to YOUTHS.

Anyway, someone somewhere decided that with all this Artificial Intelligence (AI), more power would be needed which sounded eerily similar to what they said years ago when Bitcoin was soaring to new highs. Personally, I think someone was looking for a surge in liquidity to sell their utilities on the way up and created the narrative, but that’s just pure speculation on my part.

No one wanted the utes at 840 on the index chart below, but the masses love them a month later above 900. It’s like sports. The masses hated the New York Knicks all season. I hate the Knicks. I hate the Knicks. I hate the Knicks. The Knicks win a playoff series and now everyone LOVES the Knicks.

(Click on image to enlarge)

On Wednesday we bought more levered NDX. We sold some FREL. On Thursday we bought RYKIX. We sold levered inverse S&P 500, some FREL and some levered NDX.

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