{"id":25139,"date":"2025-08-26T07:30:00","date_gmt":"2025-08-26T11:30:00","guid":{"rendered":"https:\/\/jeffclarktrader.com\/market-minute\/?p=25139"},"modified":"2025-08-25T11:15:24","modified_gmt":"2025-08-25T15:15:24","slug":"its-time-to-look-at-energy-stocks","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/its-time-to-look-at-energy-stocks\/","title":{"rendered":"It\u2019s Time to Look at Energy Stocks"},"content":{"rendered":"

One by one, the lagging sectors of the stock market are starting to play “catch-up.”<\/p>\n

It started with electric utility stocks like PG&E Corp. (PCG). One month ago, PCG was hitting new lows for 2025. Today, the stock is 20% higher.<\/p>\n

That’s a solid gain for one month.<\/p>\n

Then, the healthcare sector got in on the action. By the end of July, just about every stock in the sector was hitting multi-year lows. Today, spurred by news that major hedge funds have been buying into the sector, most healthcare names are up 20% or more since the start of the month.<\/p>\n

And now, it looks like energy stocks are ready to rally.<\/p>\n

Prior to Friday’s bump, the Energy Select Sector Fund (XLE)<\/a><\/strong> was unchanged for the year.<\/p>\n

Yes, XLE had rallied about 11% off the early April low. But, that rally pales in comparison to the 28% gain in the S&P 500. And now, as money appears to be coming out of the high-flying technology and AI names and is flowing into the lagging sectors, the value-priced energy stocks look set to rally.<\/p>\n

Take a look at this chart of XLE…<\/p>\n\n

\"\"<\/figure>\n\n

XLE has spent the past two months bouncing between $85 and $89 per share. This action has created a consolidating rectangle pattern on the chart. Since the rectangle is $4 high, any breakout from this pattern should ultimately lead to a $4 move in the direction of the break.<\/p>\n

For example, if XLE breaks out to the upside, then the price target will be $93 per share – which lines up well with the January and March highs. A break to the downside targets $81 per share – which matches the December and June lows.<\/p>\n

The MACD and RSI indicators at the bottom of the chart, which measure the momentum of the current action, are in neutral territory. They don’t indicate a preferred move in either direction. Though, in neutral, they indicate there is plenty of energy available to fuel a large move once it gets started.<\/p>\n

Since energy stocks have been lagging the performance of the broad stock market, I favor an upside breakout for XLE. The stocks are cheap relative to the S&P 500. They’re due to play a game of “catch-up.”<\/p>\n

It’s also worth noting the seasonal trend for energy stocks is bullish as we head into September. For whatever reason, the energy sector tends to bottom in August\/September and then rally for several weeks heading into the fall months.<\/p>\n

If that pattern holds true this year, many energy stocks could be sharply higher in the weeks ahead.<\/p>\n

Best regards and good trading,<\/p>\n

\"Signature\"<\/p>\n

Jeff Clark
\nEditor, Market Minute<\/em><\/p>\n\n

\n

Free Trading Resources<\/strong><\/p>\n

Have you checked out Jeff’s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just click here<\/a> to check it out.<\/p>\n<\/div>\n\n\n","protected":false},"excerpt":{"rendered":"

The lagging sectors of the stock market are starting to play “catch-up.”<\/p>\n","protected":false},"author":100,"featured_media":0,"comment_status":"closed","ping_status":"0","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[],"person":[7],"newsletter-type":[],"ticker":[],"class_list":["post-25139","post","type-post","status-publish","format-standard","hentry","category-market-minute","person-jeff-clark"],"acf":[],"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/25139","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/100"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=25139"}],"version-history":[{"count":1,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/25139\/revisions"}],"predecessor-version":[{"id":25145,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/25139\/revisions\/25145"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=25139"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=25139"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=25139"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=25139"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=25139"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=25139"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=25139"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}