Business Magazine

Wednesday Ruble Rumble – Ukraine in Flames!

Posted on the 19 February 2014 by Phil's Stock World @philstockworld

36 Rubles to the Dollar this morning.  

That's down 13% this week as the Ukraine bursts into flames live on TV as protestors are willing to die rather than accept Putin's puppet President.  Thousands of demonstrators have packed Independence Square since November, when President Viktor Yanukovych reversed a decision to sign a trade deal with the European Union and instead turned toward Russia.  The unrest intensified after an anti-protest law went into effect. Throngs of demonstrators took to the streets to protest the law.  

Riot police are out in force as protests continue in Kiev's Independence Square on Wednesday, February 19. Thousands of anti-government demonstrators have packed the square since November when President Viktor Yanukovych reversed a decision on a trade deal with the European Union and instead turned toward Russia.
These are the sort of Geo-Political events that don't seem to bother investors – until they suddenly do and now we're seeing a precipitous drop in the Ruble, which destabilizes Russia as well as the already destablized Ukraine and bad timing for Putin as the entire world already has thousands of bored reporters hanging out in Russia – just looking for an excuse to cover something besides curling.  

Protesters protect themselves with shields as they clash with police in Kiev on February 19.
The MSM keeps saying that these protest MAY lead to a civil war, but that's nonsense – this is already a civil war and, apparently, currency traders have figured that out this week.  

This works out fine for us as we shorted oil as it made it's silly run up on the premise that the Dollar was going to bottom out at 80 because CLEARLY we were not THE WORST currency on the planet.  It seems it's only taken one day for Russia to prove our point and the Dollar is up to 80.065 this morning and our Futures are down about 0.3% with the new oil contracts (/CLJ4) trading at $102.50.  

We did a Live Futures Trading Workshop yesterday at 1pm (replay available here) and I'll be on Business News Network this evening (7pm) with a couple of new trade ideas for the viewers.  Canada's Loonie is trading at just 0.90 US Dollars so congratulations to them for having a currency even more pathetic than our own.  

 

 

IN PROGRESS

 

 

 

 

 


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