Of Some Utility

I'm admittedly bad with utilities. The timing on the sector is off from the rest of the market, as in it doesn't move when I expect it should, i.e. this post is not a timing one. I will say however, that XLU did not make a new high in 2000 or 2008 bear markets. It did get all the way back to its high in the May 2021 rally though. An advance of less than 3 percent takes it to the all-time high. For dowside targets, I expect the blue breaks in the next wave. If this is a major bear market, the green will eventually crack too. Utilities options are very cheap because the sector has low volatility, but as you can see in June and in prior declines, if you can time it right, catching the downside with cheap options can be very profitable.