To receive further updates on this Utilities Select Sector SPDR ETF (NYSEARCA:XLU) trade as well as an alert when it’s time to take profits, sign up for a risk-free trial of SlingShot Trader today. 

Today, we’re opening a new bearish trade on Utilities Select Sector SPDR ETF (NYSEARCA:XLU).

Although investors weren’t showing a great deal of stress around rising rates last Friday, that is a trend we don’t expect to continue. Rising rates are bad for dividend-payers, and XLU is likely to be in the crosshairs if inflation/interest rate expectations shift (as we expect) this week.

If the market falls in the short term, we don’t see XLU being able to defend against that trend either. The potential for some short-term profits in the face of a rising or falling market makes this an attractive entry.

‘Buy to open’ the XLU April 49 Put (XLU180420P00049000) for a maximum price of $1.10.

Follow our Facebook page to receive each Trade of the Day direct to your News Feed — and join the conversation.

You can learn more about identifying price patterns and using them to project how far you think a stock is going to move in our Advanced Technical Analysis Program.

InvestorPlace advisers John Jagerson and S. Wade Hansen, both Chartered Market Technician (CMT) designees, are co-founders of LearningMarkets.com, as well as the co-editors of SlingShot Trader, a trading service designed to help you make options profits by trading the news. Get in on the next SlingShot Trader trade and get 1 free month today by clicking here.