February 1, 2022, 3:28 pm EST
Energy Jumped Again
The first day of February shows the big jump in energy again (XLE) +3.4%. Exxon Mobile (XOM) +6.4% represents the entire oil industry to leap on a new high. Recent tensions in Russia-Ukraine definitely add another demand for oil if warfare is going to start. Furthermore, China displays its power toward Taiwan through numerous crossing the borders by fighting jets that could be another invasion threat in Asia. Thus, it makes sense to have portfolio positions in the energy sector or stocks.
Another emerging industry would be fertilizer: MOS, CF +8%. Please check out their charts where they are at the breakout setup and ready to jump start their potential uptrend.
United Parcel Services (UPS) leaped up +14% after the earnings. Its gap-up from about a 10-month base also brings attention.
Although earning season may bring some good news from individual stocks, overall market conditions face many obstacles from macroeconomic points of view. Thus, we would like to stay alert and cautious about the development of the stock markets.
