Yes, the utilities really have led and we have discussed this phenomenon here (on both the upside and downside) in the past and going as far back as November 1972. But it's the lags that can get you as they have ranged to as much as 6 to 8 months before the rest of the market turned tail. I've seen numerous premature top calls on the Utes over the past few years. Fosback's best technical indicator was the Utilility Divergence Index but don't know of anyone who still follows it. Had something to do with 20 week change in the Dow Utilities minus the 20 week change in the Dow.
Does utilities really lead the market?
Started by
A-ha
, Jan 04 2007 05:04 PM
12 replies to this topic