Markets have been extremely volatile but the main thrust of markets has been in one direction:
- Commodities higher, especially anything Russia is selling
- Euro lower
- Stocks lower, particularly in Europe
We could be entering a phase where risks are more two sided with the volatility remaining.
In the past few hours we've had two big headlines. The first was flashing that Zelensky was giving up on NATO but that was something he did at least a week ago (and reiterated yesterday).
In any case, it led to some big moves, suggesting that people in the above trades are jittery.
That trade started to reverse and then reversed in a big way when Putin signed a vague decree banning exports of raw materials; though the list of materials will be out later in the week.
So now we're back in the muck and mire, bouncing around, waiting for the next bomb (or tape bomb) to drop. That raises the stakes for trading and makes keeping a tight stop and tight eye on the headlines critical.
