The S&P 500 of the United States actually grew 1.51% over the past two days with Monday's movement more intense than today's flat movement. Small cap stocks remained solid as well despite bearish movement last week and the attacks in Paris. Gains of 0.73% were sustained even though a correction today forced a tiny correction. Overall, U.S. markets looked generally healthy with investors appearing to support Paris "solidarity" and "unity" in the face of needless slaughter. Threats of possible terrorist activity in the U.S. were absent in market psychology with traders resuming trends and sentiment that were seen last week. But somehow, I feel that Monday gains after the minute of silence scheduled before the opening bell were a response of determination and hope that we will not let this horrible act move us. Economic sanity remained. European shows of strength were even stronger with the DJ Europe index increasing 1.82%.
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Stocks and indices are indeed predicting something other than "business as usual" as military campaigns are accelerated because of the attacks. Shares of energy firms and some energy commodities are experiencing bullish undertones as ISIS policy talk pervades the necessary media coverage of political events such as G20, NATO conversations, and internal agenda discussions in the U.S. the leading member of a global coalition against the Islamic State. As discussed in my previous article, airstrikes against key oil outposts of ISIS were deployed on Monday with hopes of choking financial streams fueling the terrorist network. These attacks changed the resistance's course from "containment" to "destruction." With that, investors must begin to consider, and adopt into their subsequent trading strategies, the possibility of a more aggressive plan in Iraq and Syria with discussions of a ground force presence put on the table by French officials and a few other Western leaders outside of France. Just like the Fed futures contract's movement with the prediction of rate hikes, oil and gas firms and energy commodities react to the increased probability of a reduction in petroleum supply during periods of conflict in the Middle East.
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