No one wanted to hold stocks, particularly those related to North Africa or the Middle East, over the weekend. The situation in Egypt is moving like rapid firestorm through the region. U.S. diplomats and leaders are unprepared to deal with it. Vice President Biden stated, "Mubarak is no dictator" while their jails are full of dissidents. I guess he's just "our" dictator. Hillary Clinton has taken two positions on two successive days, the first being Murbarak is our "useful idiot" and the next "he needs to make changes."

Why should we care? Because North Africa and the Middle East is a powder keg, and the only reason we're involved is we have NO energy policy. So we need all these countries as allies since we won't do ANYTHING to become self-sufficient. This has been going on for 40 years.   


That's my little rant for the day.

Meanwhile, despite the sharp selloff, bulls are quick to remind us that January is still up 1.5% even though Monday could wipe that out quickly if things don't settle down.

Many pundits were pumping stocks all day as if nothing was going on but that's what they're paid to do.

Economic data was mixed with a disappointing GDP report (3.2% vs 3.8% consensus) and the Michigan Consumer Sentiment data ticked higher helped much by rising stock prices which weight that report.

Earnings news was positive overall but there were some prominent losers (F & AMZN) missing estimates.

Commodity prices rallied sharply with news from Egypt with higher oil prices on fears of some interruption in traffic on the Suez Canal. Gold prices also sharply reversed course spiking higher on the news while the dollar rallied. Bonds were also higher in the typical flight to safety mode.

Once again on selloffs, volume explodes higher as stops get hit. Breadth per the WSJ was decidedly negative.


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