Valero Energy (VLO: NYSE)

Valero Energy (VLO) continues to be a strong player in the energy sector with its focus on sustainable fuels and significant investments in low-carbon energy solutions. The company’s move to supply sustainable aviation fuel (SAF) in Florida highlights its proactive approach to the green energy transition, a space that is rapidly gaining importance due to increasing environmental concerns. This strategic initiative positions Valero to capitalize on new revenue streams and may attract more environmentally conscious investors.

The Diamond Green Diesel venture is another key driver of Valero’s push toward cleaner energy, aligning with rising regulatory pressures and consumer demands for more sustainable fuel options. As the world moves toward low-carbon solutions, Valero’s investments in these areas could prove highly profitable.

In terms of institutional sentiment, Wolfe Research’s upward target revision from $169 to $172 signals strong confidence in Valero’s future performance, supported by its substantial revenue stream of $144.77 billion and excellent cash flow generation. These factors provide a solid foundation for continued growth, even amid broader industry challenges.

We are bullish on VLO above $119.00-$120.00, with an upside target of $181.00-$182.00.

Key Indicator of Tech Momentum (Sector ETF: SMH/QQQ)

It’s time to revisit one of the key ratios for understanding the tech sector’s momentum—the ratio between semiconductors (SMH) and the Nasdaq 100 (QQQ). This ratio has consistently been a reliable indicator for assessing near-term risk sentiment. When SMH outperforms QQQ, it signals a “risk-on” environment, while the opposite—QQQ outperforming SMH—indicates “risk-off.” The rationale behind this is simple: tech companies, which dominate QQQ, rely on chips to operate. A decline in chip demand suggests potential issues in the tech sector, whereas strong chip demand indicates healthy activity.

Recently, the ratio has formed another important higher-low in its trend, which reinforces its bullish outlook. This positive signal bodes well for the overall market, as semiconductors often lead the way when the market is headed higher. It’s usually a good sign when chips are driving the upward movement.

Bitcoin (BTC/USD)

BTC is testing the top of the bull flag resistance level around $68,000. The price action has established a higher high compared to the highs at the end of September and August, confirming that the higher time frame trend is indeed upward.

Given this momentum, it seems likely that BTC may consolidate in this area for a few days before breaking higher out of the bull flag pattern, setting its sights on the $70,000 level once again.