The energy sector is currently outperforming other market sectors, with significant gains in recent weeks. Energy stocks, represented by the $XLE ETF, have seen a notable breakout, with 64% of the sector now above their 50-day simple moving average (SMA), the highest level since April. Additionally, 95% of the S&P 500 Energy sector members made a new 4-week high last Friday, the most since January 2022. This performance is highlighted by a 6.4% increase in the $XLE ETF this month, while broader market indices such as the $SPY and $QQQ are in the red. Notable stocks within the sector include $OXY, $VST, and $GEV. The energy sector has outperformed on a month-over-month (m/m) basis and over the last three months (L3M), and it is expected to outdo even oil.