How To Trade The Stock Market After The Attempted Coup In Turkey

Verified Investing

Junior member
10 0
The U.S. stock market closed on Friday flat to slightly lower. Institutions kept the lid on the news that was breaking a world away to make sure the stock options they had sold to investors expired worthless, maximizing profits. Options expiration is a multi-million Dollar payoff to institutions, thus important to control. An attempted miliatary coup in Turkey. The Middle East, a hot bed for terror already, had just blown up again with more violence. Turkey is a NATO member and this is a big deal since the country borders Syria and ISIS held territory.



The markets sold off sharply after-hours Friday. However, that does not tell us anything about what Monday may hold. Why? Simply put, the markets sold off after-hours on fear and panic of the unknown. Who is in control in Turkey? What was going to happen next? The markets always sell on fear of the unknown. Sell first, ask questions later is the common theme. If things straighten themselves out by Monday morning, the markets may shrug this off like no big deal. There is likely to be some minor selling on one more potential world issue, but if the Turkish government holds on to power and puts this coup down, markets will have a muted response.



On the other hand, if there is chaos and fighting in Turkey Sunday night, there is likely to be one heck of a negative reaction. Turkey has been a stable country in a part of the world that has been filled with insanity. Turkey has also been an ally to the west. Instability there could be very detrimental to the whole entire region. The markets are priced to perfection and a Brexit type reaction is likely if things are not stable by Sunday night.



To profit from this event you likely had to be short going into Friday's close like I was and those that follow me. Why was I short? The logic is simple. The markets are at all time highs, P/E ratios are at the very high end of historic levels. Smart money has sold longs and shorted the market because any shock to the market means solid downside and good news means minimal upside.

Turkey.png


By Pro Trader Gareth Soloway
 

tomorton

Legendary member
8,408 1,338
Institutions failed to keep a lid on the news (did they ever attempt it, how would they actually achieve that anyway?).

Restoration of calm in Turkey over the weekend is just as likely to lead to a relief rally as a "muted response", so the risk of jumping in short is significant.

Its like all trading based on live events - there is nothing to go on but a hunch or what some guy you don't know says.

Now I used previously to eagerly await Gareth's market analysis videos, so nothing against his expertise, but I think he's just a tad over-excited this weekend.
 

kalott

Established member
736 82
just buy the dip (y)

the centralbanksters will hold the market up what ever happens :smart:
 

itspossible

Senior member
2,796 569
The U.S. stock market closed on Friday flat to slightly lower. Institutions kept the lid on the news that was breaking a world away to make sure the stock options they had sold to investors expired worthless, maximizing profits. Options expiration is a multi-million Dollar payoff to institutions, thus important to control. An attempted miliatary coup in Turkey. The Middle East, a hot bed for terror already, had just blown up again with more violence. Turkey is a NATO member and this is a big deal since the country borders Syria and ISIS held territory.



The markets sold off sharply after-hours Friday. However, that does not tell us anything about what Monday may hold. Why? Simply put, the markets sold off after-hours on fear and panic of the unknown. Who is in control in Turkey? What was going to happen next? The markets always sell on fear of the unknown. Sell first, ask questions later is the common theme. If things straighten themselves out by Monday morning, the markets may shrug this off like no big deal. There is likely to be some minor selling on one more potential world issue, but if the Turkish government holds on to power and puts this coup down, markets will have a muted response.



On the other hand, if there is chaos and fighting in Turkey Sunday night, there is likely to be one heck of a negative reaction. Turkey has been a stable country in a part of the world that has been filled with insanity. Turkey has also been an ally to the west. Instability there could be very detrimental to the whole entire region. The markets are priced to perfection and a Brexit type reaction is likely if things are not stable by Sunday night.



To profit from this event you likely had to be short going into Friday's close like I was and those that follow me. Why was I short? The logic is simple. The markets are at all time highs, P/E ratios are at the very high end of historic levels. Smart money has sold longs and shorted the market because any shock to the market means solid downside and good news means minimal upside.

Turkey.png


By Pro Trader Gareth Soloway
we are still in a bull market mate-you have it 100% wrong
 

darktone

Veteren member
4,016 1,084
democracy of the democracy in the democracy and the democracy. The democracy is the democracy cos of the democracy and in the case of the democracy the way to democracy is of course democracy.
Sorry ive been watching the BBC for 5 mins democracy.
 
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