Today the Ukrainian stock market resumes operation after the long weekend. The opening of Ukrainian trading platforms will take place against the backdrop of controversial foreign news. On the one hand, in recent days, stock markets managed to win back most of the recent decline. On the other, this morning, sellers have managed to once again seize the initiative.
Of course, if desired, such market behavior can be explained by changes in the news background. For example, the growth of stock indices at the end of the week was based on positive economic data from the U.S., and news of the successful restructuring of Greek debt was on par with the expected recognition of default, which encouraged profit-taking.
However, from our point of view, such risky asset dynamics seems quite logical from a market (technical) point of view. From Wednesday to Friday, we witnessed a rebound after a decline in the first half of last week. Now, we are seeing a correction in relation to this rebound, which, in theory, could turn into a short-term trend reversal.
Under such circumstances, investors should not open short-term long positions; however, in terms of opening short-term short positions, the situation is much more preferable than was the case on Wednesday, March 7. At the same time, we continue to be moderate optimists and believe that investors should not make any changes to their portfolios given their defensive position.
