Utilities are about to have a religious experience. All those folks long the utes are going to be on their knees praying for the pain to stop. Utilities are on the verge of a neggie d spankdown in both the daily and weekly time frames.
You can fry an egg on the new AI chips since they run so hot and even cook a Rueben sandwich on a NVIDIA rubin chip. Utilities are providing the power and cooling for the AI revolution that is supposed to change all our lives. Are you caught up in the hype? It is a bunch of tech people in fleece vests that do not want to lose their jobs so they cheerlead the AI technology every 10 minutes calling it the best thing since sliced bread. Billions are invested in a circle jerk that is in essence, an all or nothing strategy. If AI is the Second Coming, fine, if not, it will be ugly.
Anyhoo, everybody and his bro are long and buying utility stocks. Majid, that drives the Uber, and Carmelita, that washes dishes at the William Penn Hotel, are taking their entire paycheck and buying utes. When asked for a hot tip, the shoeshine boy looks each way, then whispers, "utilities."
The daily chart shows four days of matching highs in price so the chart indicators can be assessed to see if negative divergence is in place. Do you see it? The red lines show the neggie d (price rising as the chart indicators slope down). UTIL is out of gas in the daily time frame and cannot push price any higher, therefore, it is time for a neggie d spankdown. Are you holding utilities? If so, bend over and grab your ankles.
The MACD line on the daily chart is trying to reconstitute a higher high but that does not look like any threat to the bears. Price has violated the upper band so a trip down to the middle band at 1114 and rising is on the table and the lower band at 1072.
The ADX indicates that the new record highs and rally are not reflective of a strong trend higher. The last strong trend ended in early August. This is negative because bigtime price highs should come with the ADX running higher.
The bullish euphoria in the AI hype is wild and out of control like the dot-com bubble. The Aroon shows that all the bulls remain bullish utilities and all the bears remain bullish as well. That is funny. Everyone is loaded up in the daily time frame on the bull side of the boat. The daily chart is one you want to run from. If you own utilities, ditch them or you will lose money going forward.
On the UTIL weekly chart, it is a lot of the same-o, same-o, as the daily chart. The red lines show the neggie d at play wanting to see a smackdown going forward and a multi-week pullback. The MACD line is trying to inch higher but likely poses no threat to the bear case. The red rising wedge is a bearish pattern. The RSI and stochastics are overbot agreeable to a pullback.
Price has violated the upper band so a move down to the middle band at 1087 and lower band at 1021 are on the table. The ADX was last in a strong trend on the weekly basis last year and that petered out as 2025 started. Despite the euphoric record highs this year, the ADX no longer considers the utility rally to be a strong trend higher.
The Aroon is another comical metric showing that all the utility bulls remain bullish the utilities and all the bears remain bullish as well on the weekly basis. The cleaning lady at the local high school does not want to miss out on the easy gains so she placed her entire life savings into utility stocks. Keystone told her that she would be working as a cleaning lady for a long time.
The daily and weekly charts are garbage. Get out and save yourself if long any utilities. If you stick it out, you will lose a lot of money and then in a few weeks a judgement can be made about a relief rally. Keystone does not hold any utes long or short right now but obviously the play would be on the short side going forward.
Timmy Trader was bragging to pretty Emily, the administrative assistant, that he was loaded up long with utilities. Timmy puffs his chest out and says he is the new Jesse Livermore thinking he is impressing the young filly with his stock market prowess. Emily walks out of the breakroom with her buttered muffin telling Timmy that she would never date a man that does not respect neggie d on the daily and weekly. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
Note Added 10/23/25: UTIL drops to 1133. UTIL topped-out at 1181 on 10/16/25.
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