These AI Stocks Are Just as Hot as Nvidia. Don't Get Burned.

Paul R. La Monica, Barron’s

October 4, 2024 at 12:00 AM UTC

In a recent report, SentimenTrader's senior analyst Dean Christians warned that utilities are overextended, with multiple indicators signaling a potential reversal, citing similar past conditions with an unfavorable short- and medium-term outlook.

The spike in utilities may be over. Dean Christians, senior research analyst with SentimenTrader, said in a report Wednesday that "the sector has reached a critical crossroads as several indicators suggest the group is overextended to the upside.

Christians said, "it's anyone's guess" as to whether the surge in utilities "stems from the Fed policy shift, a slowing job market, or anticipated energy demands driven by artificial intelligence."

Regardless, it may be time for investors to pull back on the red-hot sector. Christians noted that utilities "may be poised for a downside reversal" and that "following similar overbought and relative performance conditions, the outlook for utilities was unfavorable…especially over short-and medium-term horizons."