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 six spots to the top of our sector rankings.
Utilities were the only sector to finish the week in positive territory, holding strong despite broad market weakness.
Here’s a look at our overall industry rankings, where Electric Utilities broke into the top 10. Multi-Utilities and Gas Utilities also surged higher this week.
They are all showing impressive relative strength and resilience, even as volatility picks up elsewhere.
Below are the Top 10 names in the Electric Utilities group, ranked by relative strength.
This week’s favorite pick is Entergy Corp $ETR:
After completing a decade-long base late last year, price spent most of this year digesting gains and consolidating around the 161.8% extension.
Now, the stock is resolving higher from a continuation pattern, printing fresh all-time highs—and I believe a new leg up is underway.
As long as ETR sticks the landing above 85, I want to be long with a target of 120.
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.
