Stock indexes holding in there after a weekend of non-action and more lead flying in the Ukraine.
Obviously, the market has made the rational decision that the likely hood of NATO or the US EVER putting boots on the ground in Ukraine is about as likely as Richard Nixon running for President in 2016.
What is interesting is the failure of the trend-line in Gold.
And , finally the failure of the wheat market to hold its “risk premium” that had built up over the last few weeks on Ukraine worries.
Apparently, the Easter Bunny left the hard data in trader’s baskets yesterday, reflecting the huge world wide supply, the fact that no trade has been disrupted, the fact that Russia needs to sell grain to raise $ (they can’t just live on oil and gas alone), and the list goes on. Throw in the fact that we are heading into the time of year wheat exports seasonally decline.
In any event look at the trend-line below in gold. Last week it gave us a buying opportunity. This week, so far, its setting up to be upside resistance now.
Bull or Bear, you have to watch this t-line.
The intersection at 1299 is key. As always, keep your stops tight.
