Yesterday’s market responses to the actions of Russia’s petulant midget were quite violent and then faded. Commodities rallied strongly, including Gold. That produced a top extension, as we reported part-way through the day and that signal was still ‘good’ through the close, even though the price had dropped by $50 after we pointed out this developing signal:
Some other commodities also rallied, failed and fell, principally energy contracts (not European gas, obviously) and we saw a top extension in Brent crude. There were four such tops to report, three in grains and that Brent signal:
Lastly, stocks fell and then rallied but we only saw one bottom extension – in Austria. This index is particularly exposed to sanctions against Russia (and also any problems in Ukraine) because of the deep involvement of Austria’s banks in the region. That probably means we shouldn’t buy Austria itself, but use this signal as a reason to buy other European markets, if only for a bounce (this is only a daily-scale signal):
All signals generated by software produced by our friends at Parallax Financial Research www.pfr.com
