Energy is positioning itself for the next major rotation.
We’re finally seeing real strength beneath the surface. Refiners are ripping, oil services are accelerating, and the smaller names are starting to firm up as well.
This sector has been coiling for years, storing energy for its next major move.
While that move could go either way, in bull markets laggards eventually catch up — and we’re already seeing early signs of that rotation taking shape.
Take Small-Cap Energy versus the S&P Small-Cap Index, for example.
We’re sitting right at the 61.8% retracement of the entire rally off the COVID lows into the 2023 peak.
If there was ever a logical level for this group to turn higher and start outperforming, this is it.
Energy is no longer the forgotten child of this market. It’s slowly rejoining the rest of the family.
I’ve been increasing my exposure — picking up calls in $XOM, $SLB, $KMI, and yesterday we added $COP for Breakout Multiplier.
This setup is very much intact. If you want to ride it with us, you can join risk-free.
