The energy sector has broken out after a 3-year resting phase, representing the first leg of a major bull market; investors should focus on monthly and weekly charts to identify breakout patterns and use channel projection methods to set price targets, as this sector offers significant upside potential compared to other markets like tech stocks or precious metals.
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Deep Dive
THE ONE SECTOR MOST DON'T SEE ... 20 YEAR BREAKOUTAdded:
You know what try this? Forget everything. Forget your Bitcoin. Forget your stock market, especially right now.
>> [laughter] >> Forget gold and silver. They're done.
They're dead. They're done. Gone. Gone.
Forget it all.
There's only two markets that you should be focusing on. One, I'll get to that in just a minute or maybe another video, but the second one is energy sector. Energy sector has just broken out and it's I see this as a first leg first leg in a very big bull market. First leg in a very big bull market.
>> [snorts] >> The energy sector is booming right now.
Gone through a bit of a resting phase, right? This is what markets do, right?
So, if you watch my stock market update, you will know that you understand what's going on with with this XLE. Big move up, resting phase. Anyway, moving on now through to if we go to check out this.
If we go to the big long-term monthly charts, look what's happening here.
This here is the energy sector on a monthly basis.
Look at this beautiful beast. What is this? We've done nothing for all this time.
Whenever the market does nothing for quite a bit of time, 20 years, and especially let's say nothing and then it goes through a very quiet very quiet very tight nothing phase for 3 years, and then we break out. What do you think this break out here is in the big picture? Big large picture.
Which by the way, if you're not looking at the monthly charts, weekly charts, and and especially those two time frames, you're missing the big picture.
Look at this here. You get a clear visual of what? To me, this is a massive huge huge probability that we have just started an ultimate massive big bull market.
Now, what is a big bull market? What is a big bull market? Look at this here.
Check this out. A big bull market is what? We have the breakout. And then we have correction. And then we have break out, and we have correction. And That's a bull market, right? This here is a bull leg. Now we're going through a bit of a correction. Get ready for another really, really, really big move on the upside here. And this is just not the XLE. The whole energy sector right now is on fire. And this is the place.
Forget your mag seven. Forget the Nasdaq. Forget the AI stocks. Forget the software stocks. Forget all that crap.
Gold silver, who cares about that sort of stuff?
This is the place to be. The number one sector that has just broken out right now is the energy sector. Now the good thing about this is if you do a do a bit of say projections, and how you do this, you find a channel. I call it a channel projector target. You measure from the high, then you go to the low, and when you measure that and you project it up from there to there, guess what you get?
You get that as a target. What does that mean?
Tell me what that means. That means what? Now, we're probably going to get to the 120 level. So if I go back to this level here, and let's go back to here. That projection from there to there is the 120. If we go to say for example this one here, which is the weekly charts, and you can see I've measured from the high to low there, and I project it out from there to there. On a short-term target, I see this thing going to 80. What does that mean?
That means I see this thing breaking soon and making a move up towards the 80 level. Cuz to me, this is the breakout now after 3 years of doing nothing.
3 years of doing nothing, now we get the breakout, and now I'll tell you what, there is some really especially not just in XLE, but some of the really good energy stocks that I've been going through. I'm telling you right now, this is the place to be, cuz whenever it starts to trigger that next move up, it could be big and utilizing things like options, oh my goodness. And I'm patiently waiting for the trigger. Hey, real quick, before you go, see that book on the screen right now? Go get access to this because what you're about to learn in how to create a fearless trading psychology, you'll discover the mental frameworks and the psychological shifts that give the elite traders the missing X factor and what's called the invisible edge that separates consistent winners from emotional gamblers. So, there should be a link in the description there or go to johnsfreegift.com right now. Go get free access, download this right now, go through it. It's nine chapters long, deep in detail, and once you read this, you'll start to really understand the psychological shifts that most traders simply don't understand.
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