War and Peace ? Markets move
Markets move when there is a War. Wars scare people and traders alike. This is always expected and always a known fact. Mondays plunge was well known ahead of time.
The events of the weekend definitely moved the markets both ways. Monday was down on concerns that a major war was in progress and when the fears were abated by none other than Mr. Putin everything catapulted to the upside as buyers bought the dip. This was a great time to scoop those hard to get stocks like GOOG and PCLN. SPX made a splashy red candle on Monday but reversed direction today. We just have to wait and see how this War and Peace plays out this week. Politics drives market to a great extent.
The oil prices have been creeping up lately in the US and the domestic gas is now almost $4 /gallon. Those rise in prices always undermines consumer confidence and slows down the economy later.
For now the market direction remains solidly to the upside and unless broken by more war drums or a salvo of missiles from either side. The Russians have already test fired a Topol Intercontinental Ballistic missile yesterday, wonder how the West will respond for such provocations. I hope for the best. If there is a dip I am sure traders will scoop bargains once again.