Do you remember that old television commercial for Fruit Loops cereal? “Follow your nose it always knows”. Well, in the trading world it is Exxon Mobil Corp.(NYSE:XOM) that is the Fruit Loops of stocks. When this stock rallies or trades higher there is a very good chance that the stock market will bounce higher. When Exxon Mobil Corp. declines or pulls back it is prudent to expect the major stock indexes to pullback.
Please remember that Exxon Mobil Corp. still has the largest market capitalization in the stock market at around $350 billion. This leading integrated energy stock is also a Dow Jones Industrial Average component. Therefore, it will effect the Dow Jones Industrial Average(NYSE:DIA) and the S&P 500 Index(NYSE:SPY) much more than it will effect the Nasdaq composite or the Nasdaq 100(NASDAQ:QQQQ).
