The S&P 500 utilities sector has tripled the broad market's 3.8 percent gain this year, making it 2014's best performing sector by far. And according to Sterne Agee chief market technician Carter Worth, utilities continue to be the best part of the market to invest in right now.
The utilities are "still an excellent area for achieving outperformance, by our work," Worth wrote in a Monday note. "The presumption is the utilities sector is toying with the prospects of a breakout-type move to all-time highs. We remain buyers."
Worth's analysis starts with a short-term view. Showing a five-year chart of the SPDR exchange-traded fund that tracks the sector (which trades under the ticker symbol XLU), Worth points out the importance of the upward channel.