In this week's Macro Insight I discussed...
RUSSIA INVADES UKRAINE
Markets last week were once again dominated by geopolitics and everybody’s worst fears were realized on Wednesday night as Putin invaded Ukraine as the US had been warning for weeks.
Asset prices had enormous swings with equities and crypto knee-jerking lower and commodities such as Oil, Gold and Wheat exploding higher.
BUY THE INVASION?
Looking back at previous wars, it typically pays to “buy the invasion” when you look 12- 18 months out. In which case we shouldn’t be surprised to see stocks rally a bit now that military action has begun.
Last week all US indices recovered their losses with Europe and EM lagging. Fed’s Powell to speak this week, will give markets clarity on level of aggression with rate hikes in face of geopolitical uncertainty.
SHORT TERM PUT BUYERS KEEP DEALERS IN SHORT GAMMA TERRITORY
Despite some short gamma rolling off last Friday, markets remain in short gamma territory as clients focus on short term put options to navigate geopolitical headline risk.
On SPX 4100/4205 should provide strong supports and 4450 call wall resistance.
Above 4450 would be required for a more sustainable sell- off in VIX as dealers would become much longer volatility and some more equilibrium should return.
EXTREME STRESS IN ENERGY MARKETS
Metals and mining continues to lead the pack as does energy this week after the wild commodity moves. Banks took a breather as yields pulled back on risk off, would expect that to recover in due course, I rolled my KRE March calls in April at the end of last week.
Filmed on on Tuesday 1st March 2022.
Want to listen to our full discussion?
Sign up for a 14 day free trial with Options Insight today for access to our Members Dashboard where you’ll find a recording of the full call as well as my market report and top trades:
Please note, these recordings are taken from my weekly Macro Insight Trading Call. If you'd like to talk to me directly about any of the topics covered, join my Macro Insight community using the link below with a two week trial: https://www.options-insight.com/macro-insight-plan
Members of our trading community find that being able to bounce their ideas and trading strategies off a professional with two decades of experience gives them clarity and confidence to grow their trading skills, and hopefully their account balance!
WHAT IS MACRO INSIGHT?
Macro Insight is an exclusive, members only community, hosted by veteran trader, Imran Lakha. When you join you will receive access to his weekly trading call, benefit from networking with other members, receive weekly marketing reports and be added to a private chat room which offers daily, realtime support and discussion. In the weekly MACRO INSIGHT trading call, veteran trader Imran Lakha, walks you through his macro cross-asset watchlist, discusses the main market moving narratives, shares his charts and the top trades that he is doing for his own portfolio. By joining a community of like-minded traders you can discuss trade ideas, increase your confidence and take advantage of opportunities in the market. This is a unique perspective into how a seasoned professional identifies opportunities, executes trades and manages risk. Every call ends with a live Q&A and an opportunity to share your ideas and receive coaching and guidance for your own trading.
DISCLAIMER Options Insight content is presented for educational purposes only. The information presented by Options Insight should NOT be construed as investment advice. Always consult a licensed investment professional before making important investment decisions. The opinions expressed by Options Insight are those of its founder Imran Lakha who shall NOT be liable for losses resulting from investment decisions based on information or viewpoints presented by Options Insight.