My relationship, as it were, with the Dow Utility Index over the past month has been an interesting one, to say the least. You can see below how, after my latest “Buy” call, we have shot higher, and take careful note of how the volume is drying up swiftly.
My view is that this bounce is over or close-to-over, as illustrated by the likes of NEE, which is approaching a major price gap.
To be sure, the two shorts I’ve got which are related to this idea (DTE and XEL) are my biggest losers so far (about -15% each) but they expired in April and March, respectively, so I’m hanging tough! Here is DTE, and the gargantuan top speaks for itself.
