Katie Stockton looked at a chart. She saw utilities were oversold. She told people a relief rally might happen. This is what passes for actionable intelligence in 2026.
The utilities sector got hurt by higher rates. Stockton says this deeply oversold condition increases the likelihood of a short-term bounce. She used the word "likelihood" because certainty would expose her to consequences. Technical analysts learned this trick from fortune tellers.
Retail traders will read this headline and think they found alpha. They will buy utility stocks tomorrow morning. They will check their accounts every fourteen minutes. They will watch their positions bleed for three weeks. Then the relief rally will arrive on a Tuesday at 2:47 PM. They will have already sold at a loss the previous Thursday.
Stockton specializes in telling people what might happen soon based on lines she drew on price charts. The lines have names like "resistance levels" and "moving averages." The lines cannot predict the future. But they can predict which retail traders will convince themselves they understand technical analysis after watching four YouTube videos.
The deeply oversold condition she mentions is just a measurement of how much utilities have dropped. Saying something oversold will bounce is like saying a rubber ball thrown at the ground will come back up. Except the ball is made of investor capital and the ground is made of continued rate pressure and the bounce might actually be a splatter.
Utilities got hurt by higher rates because utilities carry debt and debt gets expensive when rates climb. This is not a secret. This is not insight. This is subtraction.
The relief rally will come exactly when it no longer relieves anyone who needed it.
Photo by Maxim Hopman on Unsplash
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