TECH - Momo Buys On Iran Hinting At Second Front And Israel Issuing An Impossible Evacuation Order | Benzinga
To gain an edge, this is what you need to know today.
Contrasting Moves
Please click here for a chart of SPDR S&P 500 ETF Trust (ARCA:SPY) which represents the benchmark stock market index S&P 500 (SPX).
Note the following:
- The chart shows that the stock market pulled back to the top band of the top support zone on rising yields.
- This morning the stock market is moving up, bouncing from the support zone on news from the Middle East.
- Prudent investors should notice a statement by Iran’s Foreign Minister Hossein Amirabdollahian in Beirut, Lebanon. He warned that there was a "real possibility” of opening other fronts if Israel continues to intensify the war in Gaza.
- Prudent investors should also pay attention to a statement by Ali Barakeh, a senior Hamas official, that Iran and Hezbollah "will join the battle if Gaza is subjected to a war of annihilation.”
- Of special interest is that the momo crowd aggressively bought stocks on these two statements, while smart money is buying safe havens of dollar, Treasuries, gold, and silver.
- Israel has ordered 1.1M Palestinians living in northern Gaza to evacuate within 24 hours and move to southern Gaza.
- The problem is that Gaza is one of the most densely populated places on Earth. It is very small - only 140 square miles. It appears that there is simply not enough space in southern Gaza for 1.1M more people.
- The United Nations is warning that the evacuation order is "impossible and could result in devastating humanitarian consequences.”
- The momo crowd is aggressively buying stocks on the Israeli evacuation order. Smart money is buying safe havens of dollar, Treasuries, gold, and silver.
- Bank earnings this morning from JPMorgan Chase & Co (NYSE: JPM), Wells Fargo & Co (NYSE: WFC), Citigroup Inc (NYSE: C), and PNC Financial Services Group Inc (NYSE: PNC) are better than expected. Earnings from UnitedHealth Group Inc (NYSE: UNH), the largest healthcare insurer, are also better than expected.
- Prudent investors should note that Jamie Dimon, the CEO of JPM and the most respected banker in the world, is saying in ...