AI XLU Forecast + Trading Strategies


Price Forecast:


Bearish<->Bullish


Bullish Case: Given the historical support for XLU around $75 and current flat price action, there’s potential for upside driven by increased institutional interest and anticipated interest rate cuts, suggesting stability in dividends.


Bearish Case: Implied volatility remains elevated, indicating market uncertainty. Coupled with recent trading statistics showing more put volume, there’s heightened risk of declines if economic indicators falter.


Potential Outcomes:

1) XLU rallies to $81 (40%);

2) XLU maintains current price, fluctuating between $77-$80 (35%);

3) XLU drops to $75 due to macroeconomic factors (20%);

4) Sudden volatility spike causes sharp declines (5%).


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September 17, 2024


Utilities Select Sector SPDR Forecast

XLU      Utilities Select Sector SPDR











Correlated Assets

Assets that tend to move strongly with XLU



D Forecast + Options Trading Strategies   D  Dominion Energy (0.97)


EIX Forecast + Options Trading Strategies   EIX  Edison International (0.95)


SO Forecast + Options Trading Strategies   SO  Southern (0.94)


NEE Forecast + Options Trading Strategies   NEE  NextEra Energy (0.94)


KMI Forecast + Options Trading Strategies   KMI  Kinder Morgan (0.92)



Uncorrelated Assets

Assets with little price relationship to XLU



CLX Forecast + Options Trading Strategies   CLX  Clorox (-0.0)


UEC Forecast + Options Trading Strategies   UEC  Uranium Energy (0.0)


AMR Forecast + Options Trading Strategies   AMR  Alta Mesa Resources (-0.0)


LUMN Forecast + Options Trading Strategies   LUMN  Lumen (0.01)


CCK Forecast + Options Trading Strategies   CCK  Crown Holdings (0.01)



Anticorrelated Assets

Assets that tend to move strongly against XLU



SRTY Forecast + Options Trading Strategies   SRTY  ProShares UltraPro Short Russell2000 (-0.79)


SH Forecast + Options Trading Strategies   SH  ProShares Short S&P500 (-0.8)


SPXS Forecast + Options Trading Strategies   SPXS  Direxion Daily S&P 500 Bear 3X Shares (-0.81)


TDC Forecast + Options Trading Strategies   TDC  Teradata (-0.82)


ZSL Forecast + Options Trading Strategies   ZSL  ProShares UltraShort Silver (-0.88)





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