President Trump has just finished speaking in yet another public address, boasting that the ongoing conflict is so efficient and revolutionary, and comparing the long-lasting historical conflicts in the United States with the current advancement in objectives.
But Markets don’t care anymore. What they want to see is a proper solution for the Strait of Hormuz.
Despite strong reactions to his speeches during the first days of the War, traders and algorithms have progressively stopped reacting to any overly optimistic announcement from the Administration. As a matter of fact, reactions to them are now doing the exact opposite.
After his speech at the White House yesterday, Global Assets began to tumble from a sweep higher in Energy commodities – Crude prices rose in a flash from $100 to $114 (WTI). While Participants were becoming more hopeful that the conflict would end within the early-announced deadlines (5 weeks, then April 6), a more aggressive tone led to a Market-shaking explosion, as the party quickly finished and left a general hangover.
Combine the worsening tone with high-tier catalysts ahead, like tomorrow’s Non-Farm Payrolls (check our preview!), closed Stock Markets (only Futures will be open until 1:30 PM ET), and the potential for an escalation, including a ground invasion over the long weekend, and that was enough of a hit to blow up the tires from the bull-train.
Talk won’t be enough to soothe Markets in the long term – Oil is what Smart Money is looking to move their chess pieces in this gigantic geopolitical puzzle.
Hence, let’s dive right into an intraday outlook for both WTI and Brent Oil, highlighting their technical levels and outlining scenarios for their breakouts or breakdowns.