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Reliable bullish setups are a little thin on the ground right now; setups that have the potential to hand us reliable income in the form of solid dividends are even more rare.
But that’s exactly what I’m looking at right now – and what you’ll see in just a second.
See, there’s a very high level of correlation in the markets right now. That means, in plain English, that stocks that normally wouldn’t have much to do with each other are moving together – usually because of, you guessed it, headlines.
Well, just now there’s a broken correlation underway in two big sectors – utilities and energy, as tracked, respectively, by the SPDR XLU and XLE ETFs. One’s up slightly over the past few sessions, the other is down.
But both have setups that are paying high short put premium on some nice dividend-payers that could have us up anywhere from 3% to 5% a month with a 5% to 8% margin of safety.
Sound too good to be true in this market? Well, I’ve got the charts to prove it.
Here they are…
