Just as the reality of war was beginning to be felt around the world as oil prices spiked on Monday, the realization of just how utterly broken markets have become manifested itself in a wild trading session.
With the Strait of Hormuz effectively shut down by the Iranians just a few days into the Middle East turmoil, futures price for Brent and WTI crude oil had been steadily rising and went vertical Sunday night. WTI crude was quoted at $91.27 on Friday, March 6, but gapped up above $115 per barrel when futures markets opened Monday, March 9. Stock futures were as slammed Monday morning prior to the cash open.
As the trading session commenced, stocks initially dropped to fresh lows while oil remained elevated. By mid-afternoon, stocks had recovered some of their lost ground and WTI crude was trading just above $100. At 3:00 pm ET President Trump made a statement to CBS news, suggesting that the U.S./Israel war against Iran might end soon, telling Weijia Jiang, the network's White House correspondent, "I think the war is very complete, pretty much."
The president's one-liner was all that was needed for the algorithms to leap into action, sending stocks into overdrive and a positive close and WTI crude down as low as $85/barrel, below the level it had closed on Friday. This typical knee-jerk response in over-hyped, over-leveraged markets is what makes trading so difficult for individuals while at the same time immensely profitable for experienced professionals and insiders.
For what it's worth, the U.S. and Israel have been battered by Iranian missiles over the 10 days of the conflict and have been seeking a ceasefire, but Iran has refused to even address their concerns and continues to carry on their campaigns against U.S. bases in the region and the occupied territory that is Israel.
Iran has managed to destroy more tha $5 billion worth of Patriot and THAAD defense capabilities, has pushed the U.S. "armada" of ships and aircraft carriers to regions well out of range for either aerial assaults by the U.S. or missile attacks by Iran, and has decimated at least 15 U.S. bases in the region, rendering them useless as either defensive or offensive hubs.
While Trump gaslights the general public with his "war is very complete, pretty much" rhetoric, the fact of the matter is that the U.S. and Israel have lost the war and are seeking a way out. Iran is having none of it and is in a position to dictate terms of any ceasefire or end to hostilities. The likelihood of the U.S. leaving the region permanently and Israel being dismantled and disarmed grows daily.
As Tuesday comes into focus, stock futures are lower across the board, but not excessively so, European stocks are higher. Gold has recovered to $5,200 and silver to $89.
Gamble in these casinos at your own peril.
At the Close, Monday, March 9, 2026:
Dow: 47,740.80, +239.25 (+0.50%)
NASDAQ: 22,695.95, +308.27 (+1.38%)
S&P 500: 6,795.99, +55.97 (+0.83%)
NYSE Composite: 22,620.77, -168.78 (-0.74%)
Posts
No comments:
Post a Comment