Ukrainian President Declares That Russia Has Invaded – This Will Spark Selling Today

Posted 8:15 AM ET - Yesterday, I started my comments off with this quote. "As long as global geopolitical tensions remain stable, the market will float higher." Overnight, the Ukrainian President declared that Russia has invaded. Journalists are reporting that armored personnel carriers and military trucks have been spotted entering the country. Ukrainian troops have captured 10 Russian paratroopers. Putin claims they probably floated over the border. This conflict is going to escalate. The US and Europe are likely to impose additional economic sanctions. However, sanctions won't keep Putin from advancing. Cold weather is right around the corner and he believes he holds all of the cards (natural gas). Putin also believes that Obama and Merkel will watch from the sidelines. Politicians in the US and Europe are vacationing while Putin advances his plan. The Ukrainian population is larger than Poland’s and it is about the same size as Spain’s. This country is not "small potatoes". The market has completely discounted this conflict. Sanctions and uncertainty will weigh on EU economic growth. Stocks have floated higher on central bank money printing, good earnings, a lack of news and the holiday. The only potential spoiler was a geopolitical event. I will day trade from the short side. If the momentum stalls, I will call it a day. If you are long calls, use SPY $199 as your stop. . .

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