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Thursday, March 6, 2014
What can we expect to happen from here?
I just thought I would do a quick post to highlight some of what I am following right now. There is no point in trying to guess how this will play out or how markets will react. Some of the main points I am following now are -
- A Russian military invasion of Ukraine is still very much a possibility.
- There is a lot of talk about a possible cyber attack on Western interests. Mainly targeting the financial markets and infrastructure. Alternative media are saying it is likely a false flag to justify military action against Russia and its allies. We all know what has happened in the past when countries threaten to start trading oil in anything other than the $USD. They say that the malicious software is already in place and just has to be given the command to activate.
- The VIX didn't really react to the threat of a possible invasion overnight but the gold price did react. platinum and palladium are also in very strong uptrend. If the VIX gets back over 15 then we can start to take a closer look at the market charts.
- U.S. bonds have been sold off on the threat of Russia and China dumping all of their holdings if a sanctions are imposed.
- Both the $USD and $JPY are selling off in a last ditch attempt to push all the dumb money into equities. The EUR was up strongly as a currency of last resort. The $AUD is also up due the interest rate decision by the RBA.
- Crude oil has eased back after breaking out above $100.00
- We have the NFP report out tonight in the U.S. The weather has been blamed for all the bad economic news so lets see how much worse the weather has been this month. I would say this will be bad enough to push the markets to even more record highs.
I could go on but these are the main things that I am following right now. I will be back when there is something to look at.
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