Tomorrow is St Paddy’s Day and there’s chatter that Putin will air drop bottles of green vodka to the folks in Crimea. I would not be surprised to see this guy does a jig at some point while wearing a kilt, or ride in shirtless on a wildebeest with a green derby.
Tomorrow is the day when every city turns into Boston. Also nice of St. Patrick to drive all the snakes out of Ireland and straight into every bar in Manhattan.
The Nasdaq has been down 6 of 7 days and lost a little over 2% last week. The Dow and S&P were down about the same for the week.
What is interesting and frustrating is that the $SPX, $QQQ and $IWM made highs in January (pulled back in February) and went on to make higher highs in March. Not so much for the Dow. The Dow was not able to participate in those new highs. If the Dow does go back down and test the 200 day moving average (15,619), then that whole V shaped bounce that started in early February was all for naught. Remember that the Dow was the last to catch up to the rally, but now is the first to be rolling over. Granted small caps have been on fire.
It’s cool if Russia takes Crimea, whats not cool is if Putin spreads his wings and wants more of Ukraine. That’s the worry. The market doesn’t know what this ex KGB dude will do, so bids get pulled and everyone walks away. Why bother? Traders would rather get this out of the way and pay up, (I would). Why pick a bottom especially when the technicals are under stress anyway.
All is not lost, and I am seeing a lot of really nice setups that have pulled back. It’s nice to feel that you are not always chasing offers. Buying the pullbacks has been the winning ticket anyway.
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Good luck this week.