Energy Revolution:
Energy is making its presence felt in 2025, as the XLE is the best-performing major S&P sector on a one-week, month, and YTD basis. On a one-month lookback period, it is the only group in the black among the 11 major S&P groups. The daily chart of the XLE below shows it approaching a double-bottom pivot of 93.12, and a break above there would also negate the prior 3 lower highs that started last November with consecutive bearish shooting stars on 11/21-22 followed by an engulfing candle that slipped 2%. From there it declined 15 of the next 18 sessions, but it feels like this vehicle is gaining some confidence. This is a waterlogged ETF at the top and CVX looks very strong on the MONTHLY timeframe and if this can break above a cup base pivot of 171.82 in the near term that carries a measured move to 210. We continue to pound the table that this should be overweighted against its major rival in XOM and evidence of that would be the recent break above the ratio chart after a 4-year downtrend. It has a better dividend yield above 4%, and its 13% advance in 2025 thus far is double that of Exxon. Stick with winners.