Market Trend & Analysis - The market is on pace for record setters across the S&P 500, potentially exceeding 6,500 [1] - Market breath improved significantly after Jackson Hole, indicating a positive sign for the overall stock market [2][3] - Cyclicals versus defensives risk ratios have broken out to year-to-date highs, signaling a positive risk environment [5] Sector Rotation & Investment Opportunities - The analysis suggests avoiding defensive, low volatility names and focusing on cyclical areas [5] - Energy sector is highlighted as a potential breakout opportunity, being one of the worst-performing sectors year-to-date [5][6] - XLE ETF has an unfilled gap around $93, suggesting a near-term target for potential gains [6] Sentiment & Positioning - Large speculators have the smallest net long position in crude oil relative to open interest in about 15 years, indicating skewed sentiment [7] - Breakouts are starting to be seen in many energy charts, such as XLE and XOP [7][8]