Self Directed Investor Inc
SDI: "Empowering investors with ideas and education"
Symbol Lookup »  
Topics:ChinaETFsEarningsEconomyEnergyForexGoldIncomeLessonsIdeasTrading

  • Other news: News from PR Newswire
| More

War breaks out in Libya; Stocks Appreciate

Mon, Mar 21, 10:11 AM ET, by ForexTraders.com

We leap straight from the nuclear chaos in Japan to a war in Libya, and even as the former shows some signs of gradually coming under control, the new crisis in North Africa is apparently only beginning. The main difference between the Japanese crisis and the Libyan War in terms of their relevance to the market is that while the Japanese shock could have easily crashed any rally, the Libyan War may be put forth as an excuse to appreciating oil prices and commodities due to the peripheral role of the country and its resources in the overall scheme of things. In other words, we do not believe that the war itself is a major threat to overall market sentiment, other factors remaining constant.

In Libya, the West has a new war after Colonel Qaddafi violated a U.N. Resolution passed one day ago by refusing to halt the assault of his army on rebel positions. Libyan airpspace is now closed to planes, and bombs of various kinds are raining down on the regime`s Army and its various facilities. The assault is apparently directed on military targets alone, and there are no plans of attacks on power plants, TV stations or other kinds of civilian infrastructure that had been commonplace during the NATO assault on Serbia more than ten years ago. This means that the military campaign is less costly than it could be in terms of public relations, and the coalition is easier to maintain, but it also means that it may be quite harder to achieve a decisive result inside Libya. One important result of this state of affairs is that the upward pressure on oil prices may be longer lasting than many traders would assume.

In Yemen, the last props of President Ali Abdallah Saleh`s government are crumbling as his own tribe calls him to step down, and a prominent general in the army defects to the rebel cause in the aftermath of bloodshed. It is unclear how many more leaders will sever their ties to the regime, what action they will take, and how high the risk of a civil war is in the country. But Yemen`s regime is agreed to be a highly corrupt, and an inefficient one even by the standards of the region, so support for it will not be very enthusiastic. Events are generating their own momentum, and with a few exceptions, risk of upheaval in Syria, Jordan, and other dictatorships in the region is rising with each passing day. This situation, in turn, should contribute to keeping gold, and oil, relatively supported for some time.

In Japan, the cost of rebuilding is expected to reach $250 billion over 5 years. Engineers are reported to have restored power to the nuclear facility but steam continued to leak from one of the reactors on Monday.

EURUSD stays above 1.41, USDJPY rallies strongly to beyond the 80 handle, while risk pairs such as the AUDUSD remain supported with a general market rally around the world. Speculators are convinced, it seems, that the nascent U.S. growth has a while to last in part because it is generated by fundamental dynamics, and in part because of the Fed`s support. We do not expect stock markets to suffer a long lasting collapse from now on, with the Fed`s clear commitment to inflating the economy, but volatility is surely to remain a major fixture of the scene for a long time to come.


SDI Glossary: "price" Definition
SDI Glossary: "the Fed" Definition
This Article's Word Cloud:   Japan   Japanese   Libya   Libyan   This   Yemen   apparently   assault   because   could   country   crisis   down   even   from   general   have   last   long   major   many   market   means   military   more   nuclear   other   part   power   prices   rally   rebel   regime   region   remain   result   risk   some   support   supported   terms   than   that   their   time   various   while   will   with   years

| More

EURUSD Bearish Extension Bias through 1.2500 for 1.2460
Fri, Oct 31, 8:11 AM ET, by ForexTraders.com

EURUSD bear trend resumption threat We stressed in our last report to clients that "the ...

USDCAD Threat of a More Bearish Shift through Neckline, now 1.1125
Wed, Oct 29, 8:11 AM ET, by ForexTraders.com

USDCAD defensive range tone, but risk of a bear swing We have retained a negative ...

Volatility has reappeared in October, but is its return just a passing fad?
Tue, Oct 28, 9:51 AM ET, by ForexTraders.com

The moaning and groaning has stopped in financial markets, at least those cries of anguish ...

DAX Trending Up Enough?
Fri, Oct 24, 8:11 AM ET, by ForexTraders.com

DAX Trending Up Enough? Figure: Hourly chart for DAX The DAX, after opening lower galloped ...

USDJPY Falters at Our 107.50 Barrier; Initial Risk Back to 106.15 and 105.50
Tue, Oct 21, 8:11 AM ET, by ForexTraders.com

USDJPY top and bear bias intact to aim lower for 104.80/69/47 into late October Despite ...

EURUSD Resilient Above 1.2705 Support; Bull Bias through 1.2888
Mon, Oct 20, 8:11 AM ET, by ForexTraders.com

EURUSD positive tone and resistance threats A resilient digestion theme late last week, above minor ...

Can the UK economy and the Pound withstand a period of deflation?
Thu, Oct 16, 11:31 AM ET, by ForexTraders.com

The Pound just keeps on getting pounded, an over-worked phrase if ever there was one, ...

GBPUSD Bear Bias Intact for 1.5854 Next, then 1.5750/20 Targets
Thu, Oct 16, 11:21 AM ET, by ForexTraders.com

GBPUSD bear trend intact despite modest bounce, capped at 1.6082 Despite a midweek bounce effort, ...

The Euro has finally fallen to a reasonable level, but where to next?
Wed, Oct 15, 8:11 AM ET, by ForexTraders.com

Sir Isaac Newton is rejoicing in his grave! The Euro has finally obeyed his laws ...

EURUSD Base Leaves a Positive Bias for 1.2792, Maybe 1.2865
Tue, Oct 14, 11:41 AM ET, by ForexTraders.com

EURUSD positive range theme The push last week up through the key trend line resistance ...

USDJPY Top Aims for 106.81; Maybe 106.05/ 105.80 through Mid-Month
Mon, Oct 13, 8:11 AM ET, by ForexTraders.com

USDJPY top and bear bias intact A low level digestion to end the week after ...

Trending momentum appears to be subsiding, as ranging behavior returns
Fri, Oct 10, 8:11 AM ET, by ForexTraders.com

Trends, like all good things, must eventually find their endings. The last two months have ...

EURUSD Bullish Reversal; Upside Bias through 1.2760/70, Maybe for 1.2902
Thu, Oct 9, 8:11 AM ET, by ForexTraders.com

EURUSD bear trend reversed A firm push through the solid resistance area at 1.2700/16, and ...

GBPUSD Modest Bounce Leaves Risk Lower for 1.5854 into Mid-Month
Tue, Oct 7, 8:11 AM ET, by ForexTraders.com

GBPUSD bear trend extension threat A low level, modest bounce effort from another new setback ...

AUDUSD Upside Rejection and Probe of the 2013 Low Leaves Risks Lower
Mon, Oct 6, 8:11 AM ET, by ForexTraders.com

AUDUSD bear trend extension threat After the far better bounce effort than expected to start ...

USDCAD Downside Rejection Leaves Upside into NFP for 1.1280 Secular High
Fri, Oct 3, 8:11 AM ET, by ForexTraders.com

USDCAD bull trend extension risk Erratic price action over the past 48 hours with a ...

September - A month to be remembered for the long term
Wed, Oct 1, 8:11 AM ET, by ForexTraders.com

Can anyone still hear echoes of the chorus sung by traders back in April? It ...

GBPUSD Threat of Renewed Bear Pressures; Needs Break of 1.6162
Tue, Sep 30, 8:11 AM ET, by ForexTraders.com

GBPUSD bear trend extension risk into October A lower low and lower high Monday to ...

EURUSD Hits Our Flagged Target Area 1.2785/65/45; Risk Now 1.2662
Fri, Sep 26, 8:11 AM ET, by ForexTraders.com

EURUSD bear trend extension risk for late September We have stressed over the past week ...

GBPUSD Bear Pressures Set to Re-energize
Thu, Sep 25, 8:11 AM ET, by ForexTraders.com

GBPUSD bear trend extension risk for late September We stated in our last report that ...

After Sharp Decline, Is Now the Time to Buy Yahoo Stocks?
Wed, Sep 24, 10:31 AM ET, by ForexTraders.com

After Sharp Decline, Is Now the Time to Buy Yahoo Stocks? (Figure): Daily chart for ...

USDCAD Bull Threat through 1.1100 for 1.1155/70
Wed, Sep 24, 10:21 AM ET, by ForexTraders.com

USDCAD bull trend extension bias Further erratic price action over the past 24-36 hours to ...

USDJPY Correction to Try to Hold 108.60/50 (Late Month Bias for 110.00/67)
Tue, Sep 23, 8:11 AM ET, by ForexTraders.com

USDJPY resilient consolidation leaves risk for bull extension A high level digestion Monday, above minor ...

DAX Market Analysis
Mon, Sep 22, 11:11 AM ET, by ForexTraders.com

(Figure): Daily chart for DAX The DAX, which has been in a strong uptrend over ...

GBPUSD Looks for Bear Trend to Resume
Fri, Sep 19, 8:11 AM ET, by ForexTraders.com

GBPUSD sees cap at 1.6646, likely 1.6525 for downside risk to resurface A further bounce ...

AUDUSD Bias for Roll Back to .9010/05, Maybe Key .8980 Retrace Support
Wed, Sep 17, 8:11 AM ET, by ForexTraders.com

AUDUSD bearish extension threat An unexpected and far better recovery effort Tuesday, to probe above ...

USDCAD Bull Bias to 1.1080; Mid-Month Risk to 1.1155/70 Maybe 1.1280.
Fri, Sep 12, 8:11 AM ET, by ForexTraders.com

USDCAD bullish extension theme We have remained bullish into mid-month, but had looked for a ...

GBPUSD Bear Gap Fill Bias to 1.6234-83 Before Bear Pressures Resurface
Thu, Sep 11, 8:11 AM ET, by ForexTraders.com

GBPUSD bear trend to likely continue AFTER bear gap is closed A better bounce effort ...

USDCAD Poised into Employment Reports; Skewed Bias Higher for 1.0945, maybe 1.1000!
Fri, Sep 5, 8:11 AM ET, by ForexTraders.com

USDCAD breakout challenges A dip and a bounce Thursday, through modest support at 1.0856, but ...

EURUSD Aims through 1.3105 Target for 1.3020/00 Area
Thu, Sep 4, 9:31 AM ET, by ForexTraders.com

EURUSD bear trend intact Despite a minor bounce effort through midweek, modest resistance is intact ...

AUDUSD Bear Risk Lower for .9240/38 (Key .9208/00 into Early September)
Tue, Sep 2, 9:41 AM ET, by ForexTraders.com

AUDUSD bear bias We stated in our last report that "push back towards minor support ...

USDJPY Holds 103.50; Friday Risk Up to 104.00 and 104.20.
Fri, Aug 29, 8:11 AM ET, by ForexTraders.com

USDJPY bounce bias A probe below modest support at the 103.75/70 area, but then a ...

USDCAD Tops! Bear Risk for 1.0795, Maybe 1.0733 and 1.0713/10.
Thu, Aug 28, 8:11 AM ET, by ForexTraders.com

USDCAD bear bias A deeper correction than expected through support at 1.0872 and 1.0857 for ...

GBPUSD Bear Risk for 1.6460/55
Wed, Aug 27, 8:11 AM ET, by ForexTraders.com

GBPUSD downside extension bias A roll back lower already to the minimal bounce range from ...

EURUSD Bear Risk for 1.3105
Tue, Aug 26, 8:11 AM ET, by ForexTraders.com

EURUSD downside extension threat A better Monday break lower, through our next downside target at ...

Weekly Forex Market Followup (August 11th - August 15th 2014)
Wed, Aug 20, 2:11 PM ET, by ForexTraders.com

Key Fundamental Forex Events for the Week of August 11th through August 15th The following ...

EURUSD Bounce Efforts Stalls Again; Bias Still Lower for 1.3295
Fri, Aug 15, 9:21 AM ET, by ForexTraders.com

EURUSD bear extension risk Yet another upside recovery rejection Thursday and despite the inside pattern, ...

The British Pound is searching for a safety net, but is there one to be had?
Thu, Aug 14, 10:21 AM ET, by ForexTraders.com

Up until a month ago, Pound Sterling had been the greatest gift that a forex ...

AUDUSD Stalls Back from .9322/30 Barriers to Leave Bear Risks Intact
Thu, Aug 14, 10:11 AM ET, by ForexTraders.com

AUDUSD bearish extension bias A better bounce effort than we had anticipated Wednesday, through minor, ...

NZDUSD Bear Risk through Key .8402 Low
Wed, Aug 13, 8:11 AM ET, by ForexTraders.com

NZDUSD bearish extension threat intact As expected, a new cycle low through .8422, just holding ...

The Euro is at a crossroads, as Draghi tries to dodge the crosshairs again
Fri, Aug 8, 8:11 AM ET, by ForexTraders.com

The Euro Experimental Project (EEP), if we can be so bold as to call it ...

GBPUSD Bear Risk to 1.6813/00 Next and Key 1.6695 into Mid-Month
Thu, Aug 7, 8:11 AM ET, by ForexTraders.com

GBPUSD bearish trend extension threat We stated in our recent report to clients that "we ...

EURUSD Bear Risk to the 1.3295 Spike Low from Nov 2013
Wed, Aug 6, 8:11 AM ET, by ForexTraders.com

EURUSD bearish trend extension bias We had expected a defensive digestion tone on Tuesday, but ...

USDCAD Resilient, Risk Still Higher for 1.0960, 1.1005 and 1.1055
Tue, Aug 5, 8:11 AM ET, by ForexTraders.com

USDCAD bullish trend extension bias A modest setback again Monday after a new recovery high ...

Cable Bear Risks: $GBPUSD Targets 1.6800/6740 next, but 1.6695 is Key!
Mon, Aug 4, 8:11 AM ET, by ForexTraders.com

GBPUSD bearish trend extension threat We stated in our last client report that "we see ...

July demonstrates that Forex can be very profitable, even with low volatility
Fri, Aug 1, 8:11 AM ET, by ForexTraders.com

If you believe everything that you read from today's investment pundits, this summer has been ...

AUDUSD Bearish Shift Aims for .9258, .9230 and key .9208/00 area
Thu, Jul 31, 8:11 AM ET, by ForexTraders.com

AUDUSD tops for bear bias We stated in our last report that "we see a ...

USDJPY Growing Threat of Test to Key 102.22/28/36 Barriers
Wed, Jul 30, 8:11 AM ET, by ForexTraders.com

USDJPY positive range theme aims higher; risk of shift to more bullish tone We have ...

GBPUSD Growing Threat through 1.6952 for a More Bearish Tone
Tue, Jul 29, 8:11 AM ET, by ForexTraders.com

Cable risk of a more bearish bias A low level digestion Monday and we simply ...

The Aussie sparks interest while northern markets hit the snooze button
Fri, Jul 25, 10:41 AM ET, by ForexTraders.com

Yawn! What is it going to take to wake up our forex markets? The Euro ...

Related videos | all videos »
  More articles:  1 2 3 4 5 6 7 next »

ABOUT US »   ADVERTISE »   CONTACT US »   TERMS OF USE & PRIVACY POLICY »

War breaks out in Libya; Stocks Appreciate | Self Directed Investor | Copyright © 2008 - 2014, All Rights Reserved

Any ideas and opinions presented in Self Directed Investor content are for informational and educational purposes only, and do not reflect the opinions of BNK Invest, Inc. or any of its affiliates, subsidiaries or partners. In no way should any content contained herein be interpreted to represent trading or investment advice. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All site visitors agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. Read Full Disclaimer.

SDI is associated with: ValueForum.com -- a subscription-based online social networking forum of over 1000 individual investors. | MarketNewsVideo.com -- videos appearing on SDI are produced by Market News Video. | TickerTech.com -- stock quote content appearing on SDI is at least 20 minutes delayed and is powered by Ticker Technologies. | GoldStockStrategist.com -- Edited by Scott V. Nystrom, PhD, Gold Stock Strategist provides analysis on gold mining companies.