The retestoors always get their way. It’s a mental illness with them, always needing to revisit previous lows in order to “test” them. This process has always played out and the way it works is as simple as it is childish.
Choose a level to crash to and then rally. After said rally point to previous lows as a level to “test.” Upon manifesting this, either two things happen next.
1. We pass the test.
2. We fail the test.
If we pass it, we go higher.
If we fail it, we tank.
Sounds stupid?
Because it is.
We seem to be rallying OFF THE LOWS and the fact this is occurring is offering courage to those who are afraid of the retest. However, and this goes without saying, Russia aside, earnings have been fairly abysmal and the post earnings drops catastrophic. That said, maybe it’s already priced in? Let’s see.
For me, not exposing myself either way. The oil trade is not behaving right and pretty much everything is on edge, with little consistency amongst asset classes. What I mean is, yes there are small pockets of defensive stocks holding up — dividend payers. But the war trade in the traditional sense has also been dislodged and the oil markets are behaving like Russia is flooding it with crude, ahead of potential sanctions.
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No matter how hard Putin tries. Russia is still a shithole country.
They defeated the Third Reich at the cost of tens of millions of people.
For self-interest. Not charity
It was a shithole country then. Even more so now, when the Chinese get to look down on them.