🔥 Energy Stocks Are Heating Up

Fed meetings always bring plenty of excitement, and yesterday was no different.

Rates didn't budge, and Powell signaled fewer cuts might be coming soon.

But honestly, the only thing I care about on Fed days isn't what Powell says—it's how markets respond.

Yesterday’s market reaction was pretty muted: stocks bounced a bit, bond yields pulled back, and the dollar weakened slightly.

Overall, just another typical Fed day.

But here's the bigger story most investors are missing:

Energy stocks just won't quit.

Right now, Energy is the strongest sector in the market—not just recently, but over the past month and throughout all of 2025.

It's been quietly leading, despite oil prices not cooperating much.

In fact, since mid-2022, crude oil and energy stocks have been diverging sharply.

Oil prices have lagged behind, yet the energy sector ETF (XLE) is still up nearly 8% this year.

This is an important signal.

When energy stocks rally without the help of oil prices, it often means big underlying strength.

Currently, oil sits right at a critical support level.

If oil finds footing and moves higher from here, we could see energy stocks accelerate even faster.

And here's what really has me excited:

If you step back and look at XLE on a weekly chart, there's a huge amount of consolidation happening.

After the massive run-up from $23 to over $90 between 2020 and 2022, this pattern suggests we might see another powerful breakout, potentially to new all-time highs.

Right now, trend, momentum, and relative strength all support this bullish scenario.

Take Expand Energy Corp (EXE), a standout integrated oil company:

We like EXE above 107.50 with a near-term target around 130.00, and possibly higher.

And with volatility at historic lows in the Energy sector, there's an excellent opportunity for explosive options trades.

As long as crude stays above $65 and XLE keeps its leadership role, we'll keep adding exposure.

Most investors remain fixated on beat-to-crap Tech stocks, but this energy rally could catch many by surprise—and create major opportunities.

We’re ready and already positioned to capitalize.

If you want to catch all our latest trades and be part of this next big market move, consider joining our premium service. We share every trade, in real-time, ensuring you're never chasing the market.

Do you think the energy sector is finally ready to break out into all-time highs, following a lackluster performance over the last 2-years?

Let me know!