Let me share some charts with you.

First, a lot of chatter about market risk. This is a big lol to me. Markets have been gearing higher for decades now with TD Sequential / TD Combo 13’s all the way up. Don’t get me wrong, I use DeMark timing as a basis for most of my trades, but using 13’s to time the stock market is silly.

Instead, what I look at is the TD Propulsion level. These are created using a proprietary take on Fibonacci extensions. In our case, we use a reverse engineered version that Tom only shares rarely. The gist is that once you trade above the green line, you always target the red line. That is it. Thats the trade. Any monkey can press buy and make money in the S&P just by following this simple system.

So what is so special now about XLE? You still have a qualified TD Propulsion up target at 60. This creates an amazing risk reward versus the recent range lows near 46.5 for upside towards 60. I will never say that I would rather own XOM or CVX or big compounders like GOOGL, but sometimes the juice is worth the squeeze and this setup doesn’t get more clear from a DeMark perspective. Looking forward to providing you all commentary on a regular basis.

Paid substack subscribers can expect a report two weeks, with perhaps an occasional trade idea or hot take. Free subscribers, I will be happy to provide you with market commentary that might fit your framework.

As always, you can find our premium product over at www.pivotanalytic.com. There, I provide institutional quality research straight to your inbox, iOS or Android devices with notes that usually get sent out 6-15 times a day across various asset classes and breaking news + trade ideas. Thanks for subscribing.

Petr.