XLU Forecast


Bullish Case: The utilities sector is poised for growth, supported by decreasing volatility trends in the options market and strong institutional interest. Anticipated rate cuts could lead to increased demand for utility stocks, enhancing their attractiveness.




Bearish Case: Despite short-term support, elevated implied volatility suggests significant market uncertainty. Macroeconomic challenges, including potential recessionary pressures, could lead to decreased demand for utilities, impacting overall performance negatively.




Potential Outcomes:

1) 40% chance of modest price increase as rate cuts emerge.

2) 30% chance of flat performance due to market stabilization.

3) 20% chance of modest decline if economic fears resurface.

4) 10% chance of rapid volatility due to unforeseen market shocks.




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November 19, 2024


Utilities Select Sector SPDR Forecast

XLU        Utilities Select Sector SPDR











Correlated Assets

Assets that tend to move strongly with XLU



PNW Forecast + Options Trading Strategies   PNW  Pinnacle West (0.96)


TPB Forecast + Options Trading Strategies   TPB  Turning Point Brands (0.96)


EIX Forecast + Options Trading Strategies   EIX  Edison International (0.96)


NGD Forecast + Options Trading Strategies   NGD  New Gold (0.96)


ITA Forecast + Options Trading Strategies   ITA  BTC iShares U.S. Aerospac (0.95)



Uncorrelated Assets

Assets with little price relationship to XLU



PTON Forecast + Options Trading Strategies   PTON  Peloton Interactive (0.0)


VTRS Forecast + Options Trading Strategies   VTRS  Viatris (0.0)


AVXL Forecast + Options Trading Strategies   AVXL  Anavex Life Sciences (-0.0)


TNK Forecast + Options Trading Strategies   TNK  Teekay Tankers (-0.0)


TWLO Forecast + Options Trading Strategies   TWLO  Twilio (-0.01)



Anticorrelated Assets

Assets that tend to move strongly against XLU



WBA Forecast + Options Trading Strategies   WBA  Walgreens Boots Alliance (-0.9)


DV Forecast + Options Trading Strategies   DV  DoubleVerify (-0.9)


DLTR Forecast + Options Trading Strategies   DLTR  Dollar Tree (-0.91)


APLS Forecast + Options Trading Strategies   APLS  Apellis Pharmaceuticals (-0.92)


EWCZ Forecast + Options Trading Strategies   EWCZ  European Wax Center (-0.92)


XLU News over Time





Click points to explore news by date. News sentiment ranges from -10 (very negative) to +10 (very positive) where 0 is neutral.










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