It’s Too Late to Chase Energy, Do This Instead

Hey trader,

Stocks kept correcting last week.

It has been almost two months since the Nasdaq and S&P 500 last printed new all-time highs.

Pessimism is climbing because the logical reasons for a pullback keep stacking up. Markets have never paid much attention to logic.

Big tech earnings continue this week.

Fed Chair Warsh also holds his second press conference. Layer in escalating geopolitical tensions, and the bearish laundry list writes itself.

Here is what I want to hand you today: I’ll show you why energy’s grip on the leaderboard is closer to its expiration date than its starting line.

We’ll also take a look at where I’d rather commit capital while the crowd piles into the obvious trade.

Is Energy Refueling or Running on E?

A clean sweep on the Sector Leader Bullseye leaderboard. Energy owns every single timeframe, which signals risk-off no matter how far out you zoom.

That kind of dominance feels wonderful for anyone who was already short. It reads more like a warning label for anyone opening a position today.

Growing up in Michigan, I noticed that oil only became a topic of conversation once prices at the pump had already climbed for months. By the time a trade turns into dinner-table talk, the easy money has usually left the building.

Energy leadership tells you something real about the tape. It tells you almost nothing useful about the next ten percent in that sector.

The Case Against Chasing Energy Here

Energy is riding three consecutive weeks of leadership. Leaders commonly take a break somewhere around that stretch, and a few specifics keep me from adding exposure at these levels:

• One hint of geopolitical de-escalation could spark heavy profit-taking in the group, because a large chunk of the recent bid came from headline risk rather than demand.
• Energy carries one of the smallest weights in the S&P 500, so its leadership functions better as a signal than as an engine for the index.
• The bullish story is now common knowledge, which means late buyers pay a premium for information everyone already owns.

None of that makes the sector a short. It makes the sector a poor place to put fresh risk capital while it sits at the top of every column.

Chasing a leader in week three is how traders end up buying strength and selling weakness. That habit turns a good year into a flat one.

Where the Bulls Counterattack

The bull case starts with technology reclaiming momentum on a one-week basis. Everything else is downstream of that.

Apple, Microsoft, Meta, and Amazon all report this week. One strong print from any of them can send the market soaring and flip the short-term leaderboard in a single session.

I watch the one-week column for the first real evidence. When tech takes that slot back while energy slides to second or third, the rotation has begun in earnest. Trinity Terminal tends to start flagging long setups in beaten-down growth names before that shift shows up on any leaderboard.

Until it happens, bears deserve their victory lap. Their lap has a time limit attached to it.

I stay long-term and intermediate-term bullish here, and I’m honest about the short-term risk in front of us. Any short exposure I carry in this stretch is short with the intention of getting long.

Corrections of this variety appear in the majority of calendar years. They are the price of admission for the returns that show up over a full cycle.

Perma-bears have been calling for the top since the Nasdaq was thousands of points lower. They will eventually be right for about three weeks, and they will lose the decade around it.

What I’m Doing Instead

My plan for the week is simple enough to write on an index card. I’m leaving long-term positions alone, and I’m waiting to add new exposure with defined risk instead of guessing at a bottom.

I’m building a shopping list in technology while the sector gets discounted. Prices this soft in leadership names rarely last through an earnings cycle.

I’m also refusing to add energy at these levels. Three weeks of leadership plus universal agreement makes for a crowded room with one exit.

Positions matter more than opinions. Anyone can narrate a correction after the fact, and very few people put a number on their risk before it starts.

Watch the one-week sector leader this week above all else. If technology takes that column back, the counterattack is real, and I’ll be posting the setups in Trinity Terminal as they trigger.

Come Get Positioned With Me

Rotations like this one pay the traders who already know which names are quietly being accumulated. Trinity Terminal scores every stock in the market and flags the setups the moment an execution gate confirms.

The New Member Circle window is open right now, and Trinity Terminal is included at no extra charge. It runs $5,000 as a standalone tool once that window closes.

Membership comes with everything I use to run this playbook week to week, including one weekly Trinity Trade Alert with entry, stop, targets, and the score behind it, live coaching every Tuesday and Thursday at 2:30 PM Eastern with all sessions recorded, plus the Trinity Trade Masterclass, quarterly forecasts, and the real-money $100K Trinity Portfolio you can follow trade by trade.

Annual access is $1,995. The 3-Year Charter Pass is $2,995 and it is the best value on the page.

Every membership carries a 30-day money-back guarantee. You can watch the scores, read the alerts, and place zero trades for a full month.

If it does not look like what I described, one email to [email protected] gets you a full refund. No forms and no argument.

I would rather have you positioned before technology takes back that one-week column. Energy already had its run, and the next leader is the one worth preparing for.

[Join the New Member Circle here.]

Take Care,

Gianni Di Poce