How Geopolitics Affects Oil Stocks and Metal Stocks
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Why are oil-based stocks and metals the top-performing sectors?
Why based on Fundamentals
- Global-wide demand outweighs supply.
- Crude oil has pulled back but remains above ninety dollars per barrel. Two bullet points:
- The West has decided it will continue to buy Russian energy.
- Reports that Iran will begin delivering oil into the markets, which would increase supply.
3. Extended war in Ukraine may keep crude oil prices high
Math-based analytics for the oil sector
- technical analysis points to higher oil prices
- fundamentals point to higher oil prices
- Members of https://secretedge.us get the inside story with techniques on trading the oil markets with a low risk / high return trade method
Will oil-based stocks climb higher?Chevron broke out higher on Friday, despite crude oil prices declining. Why?
- Higher oil prices will ensure higher profits.
- Math-based analytics supports that oil continues in a sideways to higher trade pattern.
- If Iran goes nuclear due to folly in the West to get more oil, how long will Israel permit Iran to create nukes? Expect tensions to increase due to Iran desiring nukes and Israel threatened with extinction by a radical Islamic state.
- Chartists expect a prior resistance level to become a support level. Therefore, from a technical viewpoint, crude oil prices will continue to remain at higher levels, ensuring that oil companies remain profitable.
- April Crude support at $80 per barrel
- Cash Crude support at $84 per barrel
Nations with policies that incite violence- Russia now stands at the top of the list.
- China has revealed its intentions of taking control of Taiwan.
- Iran wants nukes so it can destroy Israel. However, radical Islam will not stop at the destruction of Israel.
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Metals as the top-most sector
Why?
- The Russian invasion of Ukraine caused precious metals to skyrocket. But will precious
- metals continue higher?
- Math-based analytics isolates aluminum and nickel.
- Geopolitics with the goal of the West to manufacture electric vehicles supports aluminum and nickel are likely better trade selections over precious metals.
Why FOMC will Increase Interest Rates- Inflation encourages the FOMC to raise interest rates on March 16, 2022, by a minimum of
- 25 basis points.
- Three members of the FOMC now lean to a rate hike of 50 basis points.
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What is the condition of the general market?
After Russian troops invaded Ukraine, strong rallies on Thursday and Friday, February
24 – 25, 2022, may have caused a bottom in the markets. Will the bottom hold?
Conclusions for the February 28-March 4, 2022.
- The general market is in a sideways pattern.
- The top-performing sector with significant fundamentals in support: Oil Based stocks and metals.
- The Bottom-performing sector with good fundamentals: remains with increasing interest rates.