XLU Forecast



Bearish<—>Bullish



80% Confidence




Bullish Case: Short-term bullish on XLU due to robust dividend yield and green energy adaptation, amidst moderate volatility decreases.




Bearish Case: Bearish sentiment driven by regulatory changes, high put volume, and economic uncertainty affecting utilities.




Potential Outcomes: 60% chance of range-bound movement; 25% chance of short-term rally; 15% chance of market downturn impacting utilities.




Trading Oracle: Implement a credit spread: sell XLU $79 calls, buy $81 calls expiring in 45 days. Utilize Helium's edge with a bearish sentiment spread due to current market conditions.



January 17, 2025


Utilities Select Sector SPDR Forecast

XLU        Utilities Select Sector SPDR











Correlated Assets

Assets that tend to move strongly with XLU



AFL Forecast + Options Trading Strategies   AFL  Aflac (0.95)


TT Forecast + Options Trading Strategies   TT  Trane (0.95)


EVRG Forecast + Options Trading Strategies   EVRG  Evergy (0.94)


PNW Forecast + Options Trading Strategies   PNW  Pinnacle West (0.94)


SO Forecast + Options Trading Strategies   SO  Southern (0.94)



Uncorrelated Assets

Assets with little price relationship to XLU



TMDX Forecast + Options Trading Strategies   TMDX  Transmedics (0.0)


FCX Forecast + Options Trading Strategies   FCX  Freeport-McMoRan (-0.0)


GTLB Forecast + Options Trading Strategies   GTLB  Gitlab (-0.02)


HCC Forecast + Options Trading Strategies   HCC  Warrior Met Coal (0.02)


TMO Forecast + Options Trading Strategies   TMO  Thermo Fisher Scientific (0.03)



Anticorrelated Assets

Assets that tend to move strongly against XLU



COTY Forecast + Options Trading Strategies   COTY  Coty (-0.86)


WBA Forecast + Options Trading Strategies   WBA  Walgreens Boots Alliance (-0.87)


SHLS Forecast + Options Trading Strategies   SHLS  Shoals (-0.88)


SPXS Forecast + Options Trading Strategies   SPXS  Direxion Daily S&P 500 Bear 3X Shares (-0.88)


APLS Forecast + Options Trading Strategies   APLS  Apellis Pharmaceuticals (-0.91)









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