Well, it's good for a $1 pop in oil – that's for sure! President Trump pulled out the big guns last night and launched 59 Tomahawk Missiles ($120M worth) at Syria in retaliation for the chemical weapons attack Syria claims was a set-up to give Trump an excuse to distract us from his horrific administration's bungling of the rest of his agenda – not to mention the web of intrigue surrounding all those Russian ties.
Buy hey, isn't Syria Russia's ally? Well, then attacking them "proves" Trump isn't working with Russia so case closed – call off the investigations…
Of course, it's a little strange that 59 of these missiles reportedly only destroyed 6 planes and killed 5 people and left the runway intact at the base when a single Tomahawk missile detroys a building but that's something for the military experts to conemplate – we should be more concerned about the impact on the markets.
Well, for one thing, we took the opportunity to add more oil shorts (/CL) this morning at $52.50 becasue Syria only produces 400,000 barrels of oil per day and this strike did nothing to disrupt their production nor is it likely to expand into something bigger because of some other reason than Trump is Putin's puppet but that's the only one I can think of at the moment. There was a quick $500 per contract gain on the move back to $52 and now we're waiting and seeing but still net behind from our original shorts, now needing $51.25 to break even.
We also took a stab at shorting the Russell at 1,360 (still there) but risky ahead of the Non-Farm Payroll Report, which should be well over 200,000 as ADP was a blowout 263,000 – almost 50% over expectations. Last month we had 235,000 jobs added on March 10th, but the market turned down the following 2 days, from S&P 2,372 to 2,357 but we closed yesterday at 2,357 – back at those lows.