As move closer to the week of March 13th, the markets are very volatile. What a good trader will look at is there risk vs reward. Always know how much you can lose, versus the reward.
International Capital Fearful of Sanctions
The DJI or DIA(etf) is usually the index for international money to pile into. Just yesterday Tuesday Feb 2nd, 2022 we had Biden administration discuss seizing assets of Russia and Russia citizens. This creates a huge amount of fear for international investors.
If one is bearish, they can take a stab at the SDow (ETF Ultra Short), but be careful as it moves 3 times. Know where your wrong and watch out for gaps.
Think about these two scenarios…
Scenario 1: You are an international citizen (not American). Maybe Russian, Chinese or Korean or any other person outside of United States and invest in the U.S. markets. You see sanctions being put on Russia. What if China or another international country is deemed a supporter of the war? Will you not be able to get your money out safely of the market as an international person?
Scenario 2: You are an American Hedge Fund, Pension Fund manager or Bank who invests money globally around the world. One such investment made is Russia or China to hedge any market fluctuations in the United States. The sanctions have now just destroyed the portfolio of many due to Russia index falling. Pension funds and Banks invest globally, so this may affect the markets badly.
My Point Exactly Below:
Russia Stock Market Index ETF – RSX
Watching The Dow Jones This Week
It is a very difficult market to trade right now, but insurance is being put on for a down move in the markets. You can see the Dow Jones and notice the pink lines. These are the weekly reversals, if elected by Friday (Tomorrow Feb 4th. 2022)
We are watching 32905 as last support into Friday. Close below and 29500 is possible (purple quarterly bear)
Looking At Other Markets
What’s frightening is the WHEAT, OIL, and US Dollar. You can see how the commodities have exploded. Ukraine and Russia produce 30% of the worlds wheat. So invade there and there is possible food shortages coming.
They also have Nickel, Palladium and other metals which product computer chips. Hmm not sure if anyone is seeing the dangers of this war, sanctions, etc.
Wheat Parabolic Move
Wheat is a big concern here. While it may be overbought, you need to consider food shortages during war times. Stock on can foods where possible.
Banks Runs and US Dollar
After the sanctions, we have flight to safety in other currencies. Now bank runs are happening globally as people are very concerned about their cash. Look at the dollar as during the war it exploded. The ETF could of played was UUP.
Cheering for Zelensky Is Not The Solution
People forgot the Vietnam war… and many others I suppose. Politicians and military advisors have no problem sending kids to war. While everyone is cheering for Zelensky, they should consider diplomacy.
Zelensky needs dead citizens to push for this war, thus he arms Ukrainian citizens to fight professional soldiers.
If you want to know more about the Ukrainian Political History, Read It Here.
What If You Back Putin Into A Corner?
Does anyone ask what if Putin loses… what do you think he would do to protect Russia. Remember, Putin is protecting Russia from nukes being placed in Ukraine by the United Nations and the West allies. He must protect his land…
We now need diplomacy, not War.