Saturday, February 5, 2011

Smooth Sailing—For Now

The Egyptian situation is stabilizing; Mubarek will likely step aside one way or another, and Egypt will go back to business.

Meanwhile, in the U.S., earning are doing somewhat better than expected, the VIX index of investor anxiety dropped this past week, Friday’s U.S. jobs report—cosmetically better—is lowering anxiety, U.S. Treasury bond yields are up (signaling risk-on for the markets), and all-in-all, things seem to be going okay.

So barring something out of left field, the next week is going to be Onward and Upward Ho!

The only thing that will be signalling bad juju on the horizon will be commodities: Precious metals, industrial metals, oil and agros.

Expect them all to creep up all of next week. Nothing to get into a twist over—just a steady march up, across the board.

Friday’s closing prices:
Light sweet Texas crude: $89.03
Gold: $1348.48
Silver: $29.11
Copper: $4.5795
Wheat: $853.75
Corn: $678.50


  1. Don't forget Europe.

    The Irish elections are coming up in about a month, give or take.

    Europe's banks are still insolvent, and by extension the sovereigns that guaranteed them.

    -Dave in MO

  2. Some one forgot to tell the Egyptians. Let's see how Jordan functions without gas.

    Unknown attackers blow up North Sinai pipeline that supplies gas to Jordan.


Knock yourself out!

The cult of stability is a culture of death.