US Launch Precision Attacks on Syria, Market Risk Swiftly Returns
Hey guys,
I’m sitting at my trading desk this afternoon just going through what the markets are doing and am getting these vivid orange lights piercing through my door and blinds.
I stand up, go out onto my front steps and yikes...
Syria or Sydney?
😶.
Market Overview
Speaking of Syria, we’ve seen markets continue to chill, but that could all be about to change.
In response to chemical attacks from the Assad regime, the US have launched precision attackson Syria.
In conjunction with the UK and France, the United States have hit three chemical weapons sites in Syria. Sites which were identified as being low risk to civilians and to avoid Russian forces. Whatever that means.
The US Defence Secretary also said that the strikes were a "one-time shot" without followup. In and out. No fuss. No engagement.
They have been described as the biggest intervention yet by Western powers against the Assad regime and as a result, have riled the Russians:
"Such actions will not be left without consequences.”
Said Russia's Ambassador to the US, Anatoly Antonov.
All that equals to markets is risk-off. I know that markets have been desensitised to terrorism and war, but with a direct military strike on a Russian ally, this feels different.
Nervous?
Indices Markets
So with risk-off conditions looking like coming into effect come Monday morning, the SPX resistance zone that we were shorting looks like it was a pretty red hot spot to enter, huh:
SPX Hourly
You can click the link and read my thoughts around why shorting the SPX at this possible change of higher time frame trend opens up such huge risk reward, but that chart is pretty self explanatory now.
If we get a get down on Monday, things could start to unravel quickly as stops start to trigger as the higher time frame trend changes.
Juicy.
Cryptocurrency Markets
As we spoke about on the blog yesterday, Bitcoin has continued to rip and it’s looking like higher time frame support has held. Most importantly, this means that the higher time frame trend has also remained bullish and longs remain in play for traders.
One such trade I’ve been talking about was this STEEM long. Again, click the link to read my full thought process but look at the short term retests primed for entries on the hourly:
STEEM/USD Hourly
There’s the new highs we were searching for and sets up for the possibility of adding to your position when markets pull back.
Something else interesting that I haven’t seen for a while is the fact that STEEM is now higher than SBD:
Those of us here on STEEM are certainly looking forward to higher post rewards anyway!
😎.
@forexbrokr | Steemit Blog
Market Analyst and Forex Broker.
Twitter: @forexbrokr
Instagram: @forexbrokr
It annoys me that Trump bombing Syria would somehow negatively affect markets. His bombing has absolutely nothing to do with markets. If anything weapons stocks should be up as he is spending many millions on weapons. But why should any stock be down?
And in the case of cryptos we can surely say that cryptos have absolutely nothing to do with this. It's not like bombing Syria somehow damages the blockchain technology, any blockchain tech companies headquartered in this war torn country?
Markets don’t like uncertainty. Why would you invest your money in riskier assets if you think there will be war and you might need that cash?
That’s why markets fall on things like this.
You're annoyed? Your comment annoys me.