The problems in the Ukraine are serious, have no doubt, but the market is starting to go into safety mode as the headlines trot out. A line on Reuters says that traders are citing the unrest and media reports on Russia’s military going on alert as the reason why we’re seeing a flight to safety. There’s another line that reports that one person has died being crushed in a large gathering in the Crimea. While that’s awful news in itself, it wouldn’t usually have people batting an eyelid never mind hitting the sell button.
At the moment there’s no real panic in the markets and we’re still in the ranges. I often say that the market likes a bone to chew and the Ukraine is the one it’s gotten hold of now. Headlines may now have a more marked effect on markets than they did days ago and so we must take care not to get caught up in the hype. The press like to make more of it than is sometimes necessary. Until something major happens treat the headlines with with caution.
There’s a fair chance that the situation won’t develop into anything really serious (and I hope it doesn’t), but like we had with Libya/Syria/Iran etc there will no doubt be headlines that point out that the end of the world is nigh.
Keep focused on the headlines and run with them if that’s the way you wish to play it but also look to trade the levels that are part of the overall trend. Hopefully (for peace’s sake) this will be a mere speed bump in the road but a trading opportunity none the less.
