Uncertainty reigns supreme as the unhinged Russian invasion attacks and then seizes the largest Ukrainian nuclear power plant.  Thursday proved to be another day of wild whipsaws as the market reacted to the chaotic developments pushing higher energy, food, and commodity prices.  After the morning reaction, the Employment Situation numbers the market will face another uncertain weekend that may prove difficult for the bulls working to defend recent index lows.  So, hold on tight it could be another rough day of price action.

Asian markets tumbled overnight, with the Nikkei and the HSI falling more than 2%.  This morning, European markets trade decidedly bearish due to the dangerous Ukrainian power plant developments.   Ahead of potentially market-moving economic data, U.S. futures point to a bearish open facing another weekend of uncertainty. 

Economic Calendar

Earnings Calendar

We have a much lighter day on the Friday earnings calendar, with less than 25 companies listed and most unconfirmed.  Notable reports include HIBB, INTT, & RPID.

News & Technicals’

The Biden administration announced a new round of sanctions targeting Russian oligarchs and their family members supporting President Vladimir Putin as he wages war in Ukraine.  Asked at the White House about the expanded sanctions, press secretary Jen Psaki said that the U.S. was confident that these measures were an effective approach.  President Joe Biden said later Thursday afternoon that the sanctions already imposed on Putin and those around him have “had a profound impact.”  Ukraine issues a dire warning after Russia attacks the nation’s largest nuclear power plant, eventually seizing control of the facility.  The assault was met with widespread condemnation as many in Europe woke to the attack on the continent’s largest nuclear facility, in Zaporizhzhya, Ukraine.  Russian military forces on Friday seized control of Europe’s largest nuclear power plant, according to Ukraine’s nuclear agency, shortly after a night of Russian shelling set a building ablaze at the complex.  However, authorities say emergency services have now extinguished the fire at the site, and radiation levels are normal.  “Dear stock market, you were close to us, you were interesting, rest in peace, dear comrade,” financial analyst Alexander Butmanov said during an interview on Russian channel RBC.  Russia’s stock market has been closed for five straight days following heavy Western sanctions over its invasion of Ukraine.   Elon Musk challenged the United Auto Workers to try and organize his company’s assembly plant in Fremont, California.  His comments followed President Biden’s praise of Ford and GM in his State of the Union address.  Musk has been a vocal critic of the UAW for years.  CNBC’s Jim Cramer on Thursday cautioned investors that buying the dip on high-growth tech stocks is a losing strategy in today’s turbulent market.  “There’s still plenty of other stocks out there, but if you’re still betting on these bouncing back … I don’t think it’s going to work,” the “Mad Money” host said. 

After another day, huge point whipsaws with the VIX holding a 30 handle as uncertainty reigns supreme.  Dip buyers have faced one disapointment after another as the wild price swings chop up accounts.  This morning we got the latest reading on the Employment Situation.  Estimates suggest a very strong number that, if correct, could hurt prices, clearing another hurdle for the FOMC to act aggressively.  Energy, food, and commodities continue to rise dramatically due to the geopolitical pressures fanning the flames of inflation, forcing Fed action at what could prove the worst possible time.  Finally, as the chaotic and unhinged Russian invasion intensifies, another weekend of uncertainty could make it tough on the bulls working to defend recent market lows.  With the violence of the moves, day traders continue to have the upper hand, while swing and position traders find it nearly impossible to matain an edge.  Remember, cash is a position often underutilized in times of extreme market conditions.

Trade Wisely,

Doug