Stocks Ignoring Geo-Political Uncertainty and Testing New Highs

With the events in Ukraine, Israel retaliating to terror attacks from Gaza and the concerning issue of the ISIS in Iraq and Northern Syria, one would think we should see some risk premium building into stock indices that would push stocks lower, yet after a brief sell off we are seeing a resumption of the strong uptrend.

When looking at Stocks in general, I like to look at the SP500 as I feel this index is the leader amongst stock index futures.

Looking at a daily chart below we see that the market has a LOT of respect to some timing symmetry.

I measured to move DOWN between April 4th 2014 and April 14th 2014 on SP 500 futures and then projected that with the down move we just witnessed between July 24th and August 8th. The strong support zone between 1885 to 1895 held impressively and the market bounced sharply from these levels as one can see in the first chart below.

What's next? Well the key level to observe is 1985.75, the high made on September SP 500 futures back on July 24th 2014. If we can get a close above that level, we may see another strong leg up as projected in the second chart below where I have taken the magnitude of the move up from lows made April 14th to highs made July 24th and projected into the future where you can see some possible levels in case we can get a close above 1986. I update our blog readers daily on any developments I see in the market so stay tuned!

Keep in mind that there is quite a bit of risk floating around with factors that are outside anyone's control and this market can become fragile at any time.

Disclaimer - Trading Futures, Options on Futures, and retail off-Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term foreign currency transactions involves substantial risk of loss and is not suitable for all investors. Past performance is not indicative of future results. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

About Ilan Levy-Mayer

Ilan Levy-Mayer has been a commodities broker for over 15 years, and holds an MBA in Finance and Marketing Marketing Marketing is defined as the business process of identifying, anticipating and satisfying customers' needs and wants.This is a crucial element of any operation or brokerage in the financial services space. Well-funded marketing campaigns are instrumental to the survival and longevity of these companies in an increasingly competitive industry.Within the forex space, marketers perform a wide range of functions to help procure, secure, or retain clients.In particular, newer forex brokers also have t Marketing is defined as the business process of identifying, anticipating and satisfying customers' needs and wants.This is a crucial element of any operation or brokerage in the financial services space. Well-funded marketing campaigns are instrumental to the survival and longevity of these companies in an increasingly competitive industry.Within the forex space, marketers perform a wide range of functions to help procure, secure, or retain clients.In particular, newer forex brokers also have t Read this Term from Hebrew University in Jerusalem. Ilan is currently the Vice President and a Senior Broker at Cannon Trading Company.

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