Loading ...On Friday, the markets got into a small accident and suffered from a severe case of whiplash. In the morning, Obama spoke. When it was apparent that war was imminent, the market crashed over 100 points within minutes. As war seemed less probable, the markets recover all the lost points and remained green most of the day. At the end of the day, the market finished where it started (flat and confused).
Until Syria is resolved, it will remain the top news for the markets. War with Syria means the following; higher oil, higher gold, higher defense company stocks, lower rates, and strengthening US dollar. Note however, strengthening of the dollar only lasts if we are on the winning side. If we are on the losing side, think Weimar Republic. No war results in economic news once again being the driving force for the markets. Okay, okay, I’ll take that last sentence back. I meant random front-running algos will once again be the driving force.
Today, the market is flat and waiting on anything about Syria. Japan Nikkei (+2.24%) had a burst from winning the bid to host 2020 summer Olympics. Spain’s MADX had the reverse affect (-0.6%). The important thing to do today is follow the development with Syria and position oneself accordingly.
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