The indices are bouncing around and have turned positive on reports from several news agencies that President Trump will not withdraw from the Iran deal but will, instead, impose new sanctions. Shortly after that report from CNN, The New York Times reported that Trump had told French President Macron that he will withdraw.
We will have to wait until 2 pm ET for the official announcement but the market is obviously confused by the reporting.
Oil was slammed on the initial news but there is also strength in the dollar having an impact. The indices were briefly at intraday highs but breadth is still running negative with about 3000 gainers to 3800 decliners. There are some glaring pockets of weakness in biotechnology and oil but financials and the FAANG names are driving the strength in the indices.
The timing of the news has caused some confusion for the algorithms that were preparing to trade on the actual news. It is messy out there as both the timing and the actual news is now uncertain.
As I discussed in my opening post this morning, the technical conditions favor some downside action and the algorithms are waiting for some sort of news headline to act as a catalyst. The actually announcement by Donald Trump this afternoon will most likely still serve as a triggering event for another burst of volatility.
I have not being doing too much this morning but I did add to a position in Global Blood (GBT) following its report and news that it will announce some news next week. Blink Charging (BLNK) has been a good trader yesterday and today but this is just a trading vehicle. The movement hardly seems justified but traders looking for action just don't care about fundamentals. If it is moving fast, they will trade it.
I'm still looking for more downside in the indices but it is pretty clear that it's going to be a bumpy ride. No matter what happens with Iran, it is not going to be a major market positive.