The market took the whole "crisis" in stride as it correctly understood that, human rights violations aside, this was a financial non event that was not liable to morph into a full blown geopolitical crisis. As I listened to some commentators on CNBC this week who were warning that "it wasn't over yet" I kept asking the question: Well then, what's next? Is the UN going to intervene militarily? Is the Obama administration going to send troops? Are the Europeans going to threaten Russia that they will stop buying their NATGAS if they don't pull out of the Crimea?
Outside of an escalation that, at this point, could just as easily be provoked by the West as Putin, the results of the referendum vote will show (either fairly or fraudulently) that the majority of those in the Crimea wish to be part of Russia. And once that occurs, additional sanctions will be implemented (if the West has any options) and the saber rattling and geopolitical showmanship will continue but with lessening ferocity until you have to find a story about it in the B section of your favorite newspaper.
Geopolitics aside, the market showed some impressive strength this week that speaks to a mature bull market which is still very much intact. Small cap stocks resumed their leadership in earnest and surged 1.95% on the week which is a harbinger for future gains in the entire market. Here's a daily chart of the Russell 2000:
The financials rallied an incredible 3.04% on the week! Here's the Financial Select Sector SPDR (XLF) comprised on the money center banks, American Express, Berkshire Hathaway and other financial notables: