Surge In New Highs Among Utilities
For such a normally staid sector, a lot of utilities have been putting in impressive performances. It has been enough that more than 80% of them recently hit a 52-week high at the same time. That’s among the best readings in nearly 30 years.
Across all time frames, utilities struggled to gain any amount, much less hold onto any gains that might pop up. Over the next 2-3 months, only two of the dates managed to show a positive return, and those gains were brief and ultimately erased. The risk/reward ratio for the sector is one the worst for any study we’ve seen in 20 years, and we'd rate this as a negative for the sector on all time frames.