Widows and orphans are dancing in the street. Utilities were always known as a safe stock play. Utes were steady dependable slowly growing stocks that provide a dividend so they were well suited as a place to park money for the widows and orphans. Times change, however, especially nowadays.
Utilities are overdosing on Viagra. The catapult move higher is ridiculous and obscene, especially for utility stocks, but the data centers and power needs going forward are the top concern for the AI race. The artificial intelligence stuff is hyped by who? All the tech companies and tech bros. They are talking their own book. Until business applications can actually show in concrete number terms the savings provided by the AI hype, it is all fantasy.
It is telling that the key enterprise resource software company SAP ran into trouble a week ago, as did other tech companies that provide technical business solutions to increase productivity. These are the companies that must provide the AI applications that actually increase efficiency and make all the AI garbage worthwhile. AI is a data aggregator and large language model that carries out tasks super fast. What is all the excitement about? One in eight Americans are Luddites not using computers for their daily lives either due to being poor or by preference; AI will not change their lives dramatically. We are three years and a lot more into this AI carnival ride. As the old Wendy's commercial said, "Where's the beef?"
Like commodities that experience parabolic spikes higher, the price spikes come down to earth just as fast but the question is always where they will top-out. Price has momentum so there is likely some more upside ahead. Price came up for a new record high for UTIL, or DJU, at 1171.18 on Friday the 13th. Price did not take out the all-time high at 1180.65 on 10/16/25, yet.
Utes are no longer viewed as defensive 'widow and orphan' stocks to play due to the AI fervor. The drop in yields on Friday after the inflation data also rallies utilities. Most utility projects (think big power plants) are long-term involving billions of dollars, AI is a case in point, so rates and yields are important for funding and taking on debt.
The stock market becomes crazier by the day. Utilities are now viewed as growth stocks. Pause for laughter. The utility and electrical bills are going to become a bigger and more important deal as the mid-term elections approach in November. Screw all the AI *ssholes. Let them pay for the higher utility costs that are showing up in everyone's bills. The tech companies will make all the money from AI as they further screw the American people sticking them with the electric bill.
The utility picture going forward is a hot-button issue and King Donnie will be pressured to do something. America is a nation of 30 million wealthy people screwing 300 million peons. The rising utility bills problem is more gasoline being thrown onto the burning crony capitalism dung pile.
The green lines show the positive divergence set-up in December so the bottom call was easy. The blue lines show a cup and handle (C&H) pattern that targeted 1150-ish that has been satisfied. A 2-leg bull flag is also there but was not shown since the chart would turn into spaghetti. The dark blue bars show the first leg from 1050 to 11 hundo so that is 50 difference. The sideways consolidation occurs with a downward bias in January, textbook for the pattern, and then the second leg starts at 1075-ish so that targets 1125-ish that was easily achieved.
The chart indicators remain long and strong although the RSI and stochastics are overbot agreeable to a pullback in the daily time frame. You have to wait for neggie d to form, however, if you want to attempt a short. It is best to simply watch it for a while. Keystone is not trading utes long or short right now but will likely think about a short going forward when the charts set up with neggie d. 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.
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