Trend Signal Now: Top Down Trade of the Week

Saturday, October 18, 2025

Welcome to The Strazza Letter, a free note with market insights from me, All Star Charts Chief Market Strategist Steve Strazza.

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 reclaimed the top spot in our sector rankings.

The sector is the best-performing group so far this month, and even on a year-to-date basis.

While historically defensive, the mix of stocks within Utilities has recently shown more offensive characteristics, with several names building momentum.

Here's a look at our overall industry rankings, which show Electric Utilities stocks reaching the top spot.

This group continues to display relative strength, with multiple names breaking out from multi-week consolidations, suggesting more strength still in the tank.

Here are the Top 10 names in the Electric Utilities subsector, ranked by relative strength.

This week's spotlight stock is Exelon Corp $EXC:

EXC has been forming a massive rounding bottom since 2010.

Price is now pressing against the upper bounds of this range, with buyers actively absorbing overhead supply at a key resistance level.

We want to be long EXC above 47, targeting 66.

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.

Cheers,

Steve

Steve Strazza | Chief Market Strategist, All Star Charts

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