My obsession with the Dow Utilities is starting to wane swiftly. As anyone reading Slope for more than a few days knows, I was mesmerized by the huge diamond pattern in $UTIL. The pattern is still there, and nothing has ruined it, but by GOD this has been an exasperating trade. Perhaps someone as impatient as me shouldn’t mess with stuff that moves so glacially (and, recently, against me).
It wasn’t that long ago I would have been content to have ONLY the XLU puts in my portfolio. Let’s just say I’ve changed my mind. I’ve trimmed my XLU puts to just 3/8ths the original size, because utilities seem to be the only pocket of strength in this entire market. For a permabear, yeah, that kind of sucks. The last hope for bears would be is if the trendline below holds and we start to reverse, and reverse hard. I say again, though, these XLU puts have been breaking records in their ability to piss me off.
In summary, regarding the Dow Utilities……….
UPDATE: After I put this post together, I decided to just say screw it. I’m out 100%. If XLU plunges between now and September, you can expect me to whine about it until the end of time.
