So, the invasion I thought wouldn’t happen – happened last Thursday. The press, and the Biden-Handlers were simply overjoyed with this outcome. Out with COVID, In with Invasion! Yay distraction! The timing was impeccable. If the Biden-Handlers had planned the invasion themselves, I don’t think it could have possibly been better-timed.
[Totally unrelated – I remember Klaus Schwab saying that Putin was a Young Global Leader, or as they say in that article, Junger Globaler Führer]
The normal people in the Ukraine, I suspect, are substantially less happy than the MSM, or the Biden-Handlers, what with all the fear and death and destruction that comes with military action. While the Oligarchy [in every country] can always be whisked out on their private jets, the normal people are always the ones that get hurt.
Like the Biden-Handlers, by end of day Thursday, the risk markets were actually fairly happy too. President Grandpa tottered out in the early afternoon EST, and read the script written by his Handlers, playing his part in doling out punishments for Bad Vlad Putin. How did the markets react?
Well SPX rebounded sharply, as did crappy debt, while gold, silver, palladium, and crude all sold off. Why did the markets rally on this news?
The sanctions appeared to be carefully created by the Handlers to be mostly meaningless. It wasn’t a nothing-burger, but perhaps we could call it: a not-very-much-burger. Prices don’t lie. Crude & palladium are real markets. Russia produces a lot of both items. They both sold off on the news – both in advance of the news, and after the news was released also.
Market rule #1: when prices rebound on “bad news” (invasion, then sanctions, in this case) – it means the news wasn’t as bad as the market had feared.
Market rule #2: when prices sell off on “good news” (say, a good earnings report) – it means that the market had been counting on even better news.
Markets do this sort of thing all the time.
For the week, SPX rose +35.78 [+0.82%], printing a very strong bullish reversal pattern, managing to close back above the 9 MA. Is everything all better? Well, the weekly sector map looked bearish: sickcare [+2.63%], REITs [+2.57%] and utilities led [+2.01%], while discretionary [-2.16%] and financials did worst [-0.31%].
by brushhog 
