February 3, 2021, 3:02 pm EST
Energy and Google Lift Up Markets
The energy sector (XLE) +4% and Google (GOOGL) +9% help to boost up stock markets today with mild green color. Two down days last week and two up days this week get back to a near all-time high level.
One point to keep in mind is that rebound-up days were in low volume which spells out the weak rebound. Thus, do not trust too much on the upside.
COVID-19 and vaccines are still hot topics because they determine whether the economic recovery is real or fantasy. Our holding in Novavax (NVAX) is up more than 100% since last week. It is a sign that the whole world is desperately looking for vaccines to save people’s life.
Some hotels are up like LVS +4% that shows optimism on the future that vaccines are going to work. Our opinion is to keep a conservative view on COVID-19 and vaccines because there are so many unknown factors.
Thus, a trading strategy is to keep cautious on both sides. On the one hand, keep holding strong positions. On the other hand, stay alert on any potential change of direction to the downside.