Monday, March 3, 2014

Market Update

The market sold off today on news over Ukraine but the bounce of the low was somewhat strong so I won't be surprised if the market tries to challenge the closing all time high again (1858). The situation in Ukraine will only get more interesting as Putin will not be backing off and I am sure he made his Geo-political calculations long ago on how the world would react. This whole Ukrainian crisis originates from NATO's invitation to Ukraine to join the treaty, which essentially puts pro-western military bases right on Russia's backyard and ancestral homeland. In countries where bloodline matters more than borderlines, it's easy to see why the Russians are doing what they are doing and I won't be all that surprised if Putin decides to go for other Russian regions of the Ukraine if pressured too much. And given this Geo-political  environment, the market might find it challenging to continue its bull run. The market closed right on the Trend Average today so all signals remain bullish but I for one will be waiting until I see further clarity. An ETF that is already very attractive is RSX (Russian ETF) and if that plunges even more for whatever reason, I will be buying lots of it as it is ridiculously cheap.. Whether Ukraine splits or not, in the end they will find a solution.

Short Term Trend = Bullish
Medium Term Trend = Bullish
Long Term Trend = Bullish

* Trends are not trade signals. Trends are posted for situational awareness only and does not take into account wave counts, technical or fundamental conditions of the market. While mechanically trading the posted trends is feasible, keep in mind that these are lagging indicators and as such are prone to whipsaws and I personally do not use nor recommend them to initiate or close positions in the market without taking into consideration other factors.

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