Trump also speaking
- Assad Regime is responsible for attack
- There will be no role for Assad to govern Syrian people
- Chemical attack is a serious matter that requires a serious response
- Considering an appropriate response to chemical weapons attack in Syria
- He has tto see what happens in talks with China's Xi about North Korea but says "I would be prepared to act" alone if China doesn't step up
- Has not told lawmakers about military options for Syria
- Has not talked with Russia's Putin since apparent chemical attack in Syria
Geopolitics are getting more attention. The S&P index was up as much as 11 -12 points. It is up 1 point now. So there is some give back there.
In other the markets:
- The 2 year note is at 1.242% up 0.8 bp
- The 10 year note is at 2.3426%, up 0.7 bp
- Gold is still down at -$2.55 to $1253.
If the geopolitical risks in Syria and N. Korea intensify, there should be a flight into safety. That should include bonds (lower yields) and gold. We are not seeing a lot of movement so far.
As traders, risk is increasing. Not only do we have economic risk with the US employment report tomorrow, but have the dual geopolitical risks from Syria and N. Korea intensifying. China - and their roll - adds yet another dimension.
As mentioned, there has not been much reaction. IF there is one, those moves tend to come and go. The problem is you don't know how far they can go, but technicals (whether it is in stocks or gold or bonds or the dollar) do play a role. What technicals cannot do, is give protection when the markets are closed. Those are the moves that hurt traders the most especially when the price action is against a position.