WWIII Jitters Continue
Mati Greenspan | Apr 13, 2017 04:59AM ET
There are two very high-risk events coming up in the market, aside from the warmongering that we saw in Russia yesterday.
Number one is happening this weekend in Turkey. On Sunday President Recep Tayyip Erdogan will hold a national referendum to amend the Turkish constitution, giving himself executive power.
In most democratic nations something like this would never fly but President Erdogan was careful to lock up most of his opposition. Aside from threatening the stability of the Middle East, the market reactions may be limited to the USD/TRY. Many other markets will be closed for Easter weekend.
The other event is coming next weekend but our Trading Room in eToro is already starting to prepare for it. The elections in France have a very small chance of eliciting some extremely large movements in the financial markets. This could possibly be the best trading opportunity of the decade.
Here, I made a short video for you that explains everything.
Today's Highlights
WWIII Jitters Continue
CryptoFlux - New Coin Record
Loooong Weekend Ahead
Please note: All data, figures and graphs are valid as of April 13th. All trading carries risk. Only risk capital you can afford to lose.
Market Overview
The world managed to dodge a bullet yesterday. Vladimir Putin indeed agreed to meet with US Secretary of State Rex Tillerson during his trip to Moscow. However, the press conference between Tillerson and his Russian counterpart Sergey Lavrov was less than friendly.
They disagreed on almost every key issue...
Rex says that it's clear Russia interfered with the US elections, Sergey wants to see the evidence.
Lavrov says that Assad did not use Chemical weapons, something we know the Trump administration has already acted on.
Of course, we're right back to where we started on the Syrian Civil War. Russia is backing Assad and the US is attacking ISIS.
Perhaps the greatest accomplishment from this meeting was that they were able to sit at the same table and have a civilized discussion. As they say in Alcoholics Anonymous, admitting that you have a problem is the first step to recovery.
As far as the markets are concerned, it seems that the flight to safety is currently on hold but has not been reversed.
Gold is still above $1280 an ounce and the USD/JPY fell below 109 briefly this morning.
The US dollar also took a hit from an unlikely place. Donald Trump kicked the buck in the teeth yesterday by telling the Wall Street Journal that the dollar is too strong.
It's partially my fault, people have confidence in me.
Well, despite what's happening in Trump's head, or on his Twitter feed, the Dow Jones fell for its fourth streight session yesterday and many global indices are having a tough week. The DAX, China 50, Nikkei 225, and NASDAQ, are all down about 1%.
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Still, many analysts are looking at these risks as temporary, so despite the clear signs of fear and the elevated levels of the VIX, panic has not set in... yet.
CryptoFlux Record
The total value held in digital currencies has reached a new all time record. According to Coinmarketcap.com, the total market cap of all cryptocurrencies reached as high as $28.8 Billion yesterday.
There is plenty of excitement on the Ethereum page of eToro at the moment. Many are calling for a break of $50 a coin. Certainly, the excitement will be tenfold if we see a new all time high.
Bitcoin did take a large step backward this morning with a brief dip as low as $1166 a coin but seems to have made some recovery since then.
What's next?
Some light data out of the United States and Canada this afternoon. Many traders are already starting to wind down for the weekend. Many markets will be closing tonight for Easter Weekend. Make sure to check the Market Hours page for the specific asset that you're trading.
With all the geopolitical hullabaloo going on make sure to watch out for any high risk positions that you have. And
Of course, there will be no daily tomorrow as I'll be looking for the nearest bomb shelter. Hope to see you all on Monday.
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