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The Last 17 Minutes: Russia

Posted by kdadmin on September 23rd, 2014.

During market selloffs, I like to watch the last thirty minutes of the trading session. Sometimes there can be clues about potential future hazards.

Take today, for example. At 3:43 PM (ET), with 17 minutes left in the session, the Dow Jones Newswire published this article about the complex economic challenges surrounding the crisis between Russia and the Ukraine. Funny, just last week I read somewhere that the markets had forgotten about this war.

In the next 17 minutes, the S&P 500 dropped five points to establish a new low, and proceed to shed another seven points, after hours, as of 5:00 PM, bringing the total loss for the day up to 18 points. (The arrow points to the exact time the article was released.)

The Last 17 Minutes: Russia

Now, we’re not talking huge numbers. 18 points in a day isn’t anything really earth shattering. But, we’re just three days away from an all time market high set in the premarket on September 19th, when the S&P 500 hit 2025. In other words, we’re down 50 points in three days. That’s 2.5%.

Sure, there was other bad news in the market today (the Treasury’s limit of inversions, for example), but the timing of the market move is uncanny, don’t you think?

The lesson is: The Russian / Ukraine conflict still has the ability to scar the market, at least in a volatile short term. So, what might we expect from the anti-terror campaign in Syria?

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