I have a longstanding fondness for the Dow Utilities, but I’ve been quiet about them lately. Let me dust off this topic and review a few key charts. First of all, the Dow 15 Utility Index ($UTIL) has proven itself over many decades to have a reliable habit of creating a potent topping pattern and then falling hard. Fake outs are rare, and tumbles are deep.

Since I “discovered” it last August, I’ve mentioned the diamond pattern dozens of times. In spite of the massive rally that has taken place in equities, pushing most indexes to lifetime highs, this diamond top doesn’t even have a scratch on it. Get this thing to the G.I.A., because it’s a beauty!

The trade in particular is anchored to the ETF symbol XLU. I re-entered the trade by way of September 2024 $65 puts

I would also mention, yet again, that Next Era (NEE) is equally a fantastic top. I’d suggest 64.16 as a firm stop-loss level.

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