Friday was carzy. First we had bonds and equities in a free-fall. Then we saw stocks explode higher because that’s the law. Then Presidnt Trump threw a live grenade into the markets with new tariffs, sending them into another tailspin.
My superhero has been my XLU puts. As of Thursday, I was distressed about UTIL but I amplified my position by 50%. We’ll see if that turns out to be a good move, but so far, so good. Here’s the intraday on XLU.
Looking at the daily, you can see how strong utilities have been. Like I said – distressing! We must stay beneath that red horizontal.
My faith in the past behavior of the Dow Utilities is unshaken, however. My principal concern is, even with January 2019 expirations, whether I’ve given myself enough time or not.
