XLE is set to outperform the S&P 500 due to a completed bottom formation and breakout, with improving relative strength.

Then, let's go to energy. I think that's also a very interesting sector and um I'm going to make a I'm going to try to make an interesting move here cuz this obviously still inside the lagging quadrant.

But, it's really improving rapidly. I think this is probably the longest tail because it's also a lot longer than materials. Longest tail, so picking up momentum rapidly. But also, when you look at the price chart, which we will do in a minute, actually is actually doing really well.

So, I'm going to make this an outperformer. I'm going to label this a green sector because I do feel that it is actually rapidly improving and also the combination with the price chart and the daily RRG, I think has all the ingredients to move faster and outperform the S&P 500.

It made might also be a reason to jump ahead a little bit. But, taking my chances here cuz I really think that energy sector is is in a good spot. It's in a good space.

I feel a lot more comfortable putting energy on an outperformance outlook cuz that sector is a lot smaller so the impact if I have it wrong the impact on the portfolio as a whole is a lot less.

And that allows for a little bit more wiggle room to play with as a position in your portfolio.

And then here is energy. So, this is the This is If you want to call it my bet, this is my bet. It's still inside the lagging quadrant, as you saw, but the RS momentum line is picking up, RS ratio is leveling off, starting to pick up.

I think this is an important move because this looks like a bottom formation is being completed, and this is absolutely the confirmation. We had Last week, we had the break out of this consolidation flag-like consolidation, and now this week we're breaking above that previous high, and that's the That's a new confirmation.

So, if you want to call it a signal, this is a new buy signal for the energy sector, and that's why I feel pretty comfortable, based on this price move, to to put it on a relative outperformance because I think that this I could be wrong, but I think this is a good sign.

We're taking out resistance here. That opens up a lot of upside potential, and that will undoubtedly work its way through into the relative strength outlook for the energy sector.

And then there's energy. It's still inside the lagging quadrant, but it's really improving rapidly. I think this is probably the longest tail because it's also a lot longer than materials.

Longest tail, so picking up momentum rapidly. But also, when you look at the price chart, which we will do in a minute, actually is actually doing really well. So, I'm going to make this an outperformer.

I'm going to label this a green sector because I do feel that it is actually rapidly improving and also the combination with the price chart and the daily RRG, I think has all the ingredients to move faster and outperform the S&P 500.

It made might also be a reason to jump ahead a little bit. But, taking my chances here cuz I really think that energy sector is is in a good spot. It's in a good space.