The Market x WW3
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Market On Open, Tuesday 7 April
by Alex King, CEO, Cestrian Capital Research, Inc.
So far, the WW3 rhetoric is rising. But so, rather puzzlingly, are stocks. So either:
- WW3 is going to happen but stocks don’t care (WW3 = the biggest fiscal stimulus there ever was, and maybe, depending on the outcome, the biggest there ever will be!), or:
- WW3 is not going to happen and the market knows this, or:
- Stocks and WW3 have no causal relationship.
Peaceniks will be heartened by accumulation in $SCO, the 2x short oil ETF, and by the $QQQ closing over its 21-day EMA yesterday.
War hawks will be encouraged by oil futures remaining close to the spike highs put in when the Strait of Hormuz was first closed.
Crypto bros don’t care about any of this and are just glad that their bags are getting a little lighter each week for about two months now.
As always, the only way to analyze a security is by …. analyzing that security, in isolation, without reference to (i) the outside world or (ii) other securities.
That’s what we do every day in this Market On Open note, exclusively for our Inner Circle members. Today as every other day we walk through how markets actually are, not how we think they should be. We look at the S&P500, the Nasdaq, the Dow; equity volatility, bonds, crypto, commodities, sectors and international markets. Our subscribers love it.
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Alex King
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