Welcome back for another Top Down Trade of the Week.
This is a classic leadership scan.
We start with the best sectors, then drill into the subgroups. We pick one, and then take a look at the top stocks in it.
This week’s standout is Utilities, which jumped to the third spot in our sector rankings.
Defensive rotation took center stage this week. Yesterday’s tape was rough — major indexes logged their worst session since April, and crypto got absolutely crushed, with over $20B in futures positions wiped out.
Amid all that selling, Utilities stood out as the only sector finishing the week in the green — classic defensive leadership when volatility spikes.
Here’s a look at our overall industry rankings, which show Multi-Utilities stocks climbing into the first spot.
This is a broad group that combines regulated utilities with diversified service providers, and they’re both showing leadership.
Here are the Top 10 names in the Multi-Utilities subsector, ranked by relative strength.
This week’s spotlight stock is WEC Energy Group $WEC:
The stock is breaking out of a multi-year base as price pierces through a shelf of former highs.
As long as we’re above 109, we like it long with a target of 150.
Our team at ASC is constantly running these kinds of top-down scans. If you want access to our research and the trade ideas that come out of it, join us today—risk free.
