"You don't use ketones for energy. Ketones are a byproduct of metabolic processes. No ketones = No ketosis"
This is plainly not true. The sole function of ketone bodies during carb restricted diets is to supply alternative energy for heart and skeletal muscle. There are several reasons why you may not be showing ketones according to ketostix. Large water intake, calories too low or activity level too high (so there are no excess ketones to excrete), too much protein/gluconeogenesis, defects in release of fatty acids from adipose tissue, insulin resistance causing your blood sugar to stay high, and many other things. But the bottom line is if it ain't broke, don't fix it. You're losing weight and not muscle, so don't worry about the stix.