Republic Risk: On Panic and Profit

Last night's retaliation by Israel fueled a shocking selloff that abated by the sunrise. Once again, panic selling turned into a confession of folly for many around the globe.

Equity Storm Watch Is RED on the S&P 500 and RED on the Russell 2000

A slingshot selloff happened last night at roughly 10 pm, with futures dropping sharply, Bitcoin crashing under $60,000, and oil prices spiking. Markets instantly reacted negatively to the news that Israel had conducted operations in Iran. By morning, things had abated, with prices moving back to where they started. Some traders and investors lost A LOT of money by panicking.

The Russell 2000 is still very weak. The Russell 2000 ETF (IWM) has its next support level at $190. From there… it’s a steep move down to about $177. We’re almost to oversold territory, suggesting we’re heading toward a bottom.

This is a vital lesson on taming emotions and ensuring you have all the proper information before deciding on your money. The Equity Signals are still negative as we head into the Third Friday in April (when monthly options expire).

I have a hard time imagining that too many funds will want to be short oil over the weekend, …