There’s a major divergence happening in the market.
In the past month, we’ve seen tech rally…
But we’ve also seen the utilities sector continue to push higher.
That hardly ever happens as these sectors usually move against each other. Utilities are seen as more ‘safe’ investments is why.
I’m not saying go long utilities or tech.
Instead, I see a major divergence here:
See that big gap?
I’ve never seen this in 20 years except maybe once or twice.
The orange line is the utilities sector.
The blue line?
Well, let’s just say it’s about to have a major snapback rally.
May be one of the fastest snap back rallies we may see in the next month (especially with the incoming Fed meeting next month).
This big gap in the chart has major ‘tells’ for the economy…
But it also gives you something to trade. A potential big move.
— Serge Berger
MAG-7 Stocks Are Dead—Here's What Killed Them [sponsor]The old way of investing in tech giants is over. A NEW strategy unlocks 146X more income on the SAME underlying stocks (like Meta, Apple, and Amazon) -- WITHOUT options trading. Click here to uncover the NEW MAG-7 alternative.
Source: Investors Alley