Nextera Energy (NEE) – Utilities were in focus as the markets saw broad risk off sell side action to start December. NEE actually made new 52 week highs earlier in the session before sell programs in the futures pushed things lower. The utility leader is a top weighting in the XLU ETF and has strong seasonality into December, the last 10 years being up 8 of those years with an average return of +2.5%. As a bonus, the seasonality extends bullishly into January as NEE has been up 9 of the last 10 years in Jan for an average return of +4.4%. As long as the broad market indexes see pressure it makes sense to look at more defensive sectors like Utilities and REITs. NEE is up about 14% YTD and is forming a large bullish cup and handle pattern on the weekly that measures up to 100 as a good round number target. The stock has spent the last few months building a handle around 85 which offers a big node of volume support and the 55 day EMA. Overall trend is intact as it maintains RSI above 50 level and going forward dips towards 85 likely to get bought as NEE is just starting to breakout to new 52 week highs. Options flows have been very bullish for NEE for months now. Back on 9/24 an opening buy of January 2023 $90 calls for $1.1M which are up 40% and remain in open interest.