The Egyptian cabinet resigned this morning and 8,000 people have returned to the streets. About 2000 tourists are at Cairo airports trying to leave and the media is trying to figure out if the police are using real or rubber bullets. Mubarak is being “asked” to leave, not next week or next month, but today.
Oil exploded higher yesterday, but oil stocks sold off hard. It seems the market flocked to the actual commodity, but because the risk appetite for stocks left the building, oil stocks (and everything else) were pummeled. The coming week will be interesting, as we will see if crude sells off or runs higher, but just as interesting will be how oil stocks will be treated. My guess is they will catch a bid. There is a good old fashioned disconnect brewing on that front that should be resolved soon.
Contagion in the mid east is certainly a possibility as Iran and other countries that want complete change may step up their efforts for a different regime. I wish them luck and hope they are successful, but until women stop be jailed and beaten for being raped, I don’t have much hope. It’s hard to upend thousands of years of thinking in just one weekend. Maybe its a start.
The market needed a reason to sell off. The market always needs a reason. We needed a healthy correction, it’s good for the market and it was probably a bit overdue. The phone booth got crowded with longs and it was time to exhale. I’m not sure that Apple (AAPL) or Riverbed (RVBD) really care what goes on in Egypt, but when they raid the whorehouse they take the piano player too.
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Enjoy the links and have a great weekend.
What’s been what. Stocks got a little more red.
Egypt’s’ ” Red Sea Riviera”
Get ready for the subprime meltdown movies.
Credit cards as eight tracks.
Spain’s jobless rate tags 20% (EWP)
Not a good week for EGPT
Egypt shuts down the internet.
Satellite view of Phoenix foreclosures and other cities.
T. Boone Pickens talks energy on the Daily Show
The Wave-Maker