Issue No. 14 · Tuesday · August 25, 2026
What’s Inside:
At a Glance - A “weight of the evidence” look at the current market environment, as well as my Regime map.
The Call - A deeper dive into what I am seeing.
Under the Hood - Current market internals, sector breadth, and intermarket analysis.
Sector Watch - Which sectors pass/fail the screening process.
Current Screen - Which stocks pass the screening process.
What I Am Watching - Stocks I am watching that are approaching a passing grade in the screening process. Plus, what changed from last week.
(Current ARTAIS clients, please reach out to me for a free paid subscription)
At a Glance
Market regime: Risk On
The Call - Energy
Since the start of the year, the Energy sector has been one of the best performing sectors within the S&P 500 index. Year to date, the sector is up over 41%:
A lot of this growth was due to the buildout of the AI sector and the need for more power to drive the buildout of data centers.
Companies like Williams (WMB), Kinder Morgan (KMI), ONEOK (OKE), Baker Hughes (BKR), and EQT (EQT), just to name a few, saw their stock prices rise earlier in the year as the market focused on the AI buildout.
However, once the Iran conflict began, the market switched its focus from AI to oil, causing prices to decline and creating a very different dynamic in the AI focused energy components:
This change in dynamic also increased volatility in the sector itself:
The data is now suggesting a potential change to the trend. Below is a chart of XLE, representing the Energy Sector. It is overlaid with the DeMARK indicators, which show buying and selling exhaustion.