Wait And See

As the Crimea vote approaches, the market brace itself by pulling back to avoid the possible onslaught of reactive selling. There shouldn’t be a big surprise the outcome of the vote is to join Russia. The uncertainty is not on what will be the voting result, but it is on what will happen after the vote. Will there be uprising internally between the Ukrainians and the pro-Russia backers in Ukraine? Will this uprising be an excuse for Russia to invade Ukraine and permanently station its troops inside of Crimea? These are the uncertainties that the market is pondering. What will be the consequence on the global market when the US and EU impose sanction on Russia (if they do carry out their bluff.) But in regardless what is going to take place, the market doesn’t appear to be in the 10-15% corrective mode that many of those market top callers been waiting for. Certainly the mood can change from the ‘wait and see’ to ‘sell everything then question later’ if some unexpected event occurs. But until there are signs that the market is in a full retreat, the market will continue to move higher from these minor dips until all those non-believers capitulate and buy this market at all cost.