The author states ceasefire extension is "highly unlikely" and cites a new attack in the Strait of Hormuz, implying escalating conflict. This geopolitical deterioration is expected to reverse the prior Friday's market optimism ("bull trap"), leading to a market decline at the open. Anticipate a short-term drop in the broad market due to negative geopolitical shock. Market resilience to bad news (as noted in comments); potential for de-escalation; the event may already be priced in.
The author states ceasefire extension is "highly unlikely" and cites a new attack in the Strait of Hormuz, implying escalating conflict. This geopolitical deterioration is expected to reverse the prior Friday's market optimism ("bull trap"), leading to a market decline at the open. Anticipate a short-term drop in the broad market due to negative geopolitical shock. Market resilience to bad news (as noted in comments); potential for de-escalation; the event may already be priced in.