Market comments for March 11th

Much news in the world today. There is the big 8.9 magnitude earthquake in Japan with a Tsunami following. There is the trouble in Libya, the unrest still in Egypt, and new protests in Saudi Arabia. But if that isn't enough, the Michigan Sentiment for March came in at only 68.2, while expectations were for a 78.0 reading. That is a huge drop and most likely based upon the recent rise in Oil prices because of the trouble in Libya and Egypt. The prior reading was a 77.5 reading. The reading today was the lowest since Oct. 2010. See the chart below.

The market is meandering today after the big sell-off yesterday. It has been both down and up today but the total range is about 94 points today for the Dow. It does not change my view that we are headed lower next week.

Demonstrations in Wisconsin

We are now watching demonstrations in Madison, Wisconsin because the Gov. there wants to disband the Government Employees Unions right to collective bargaining. People are getting angry everywhere it seems and this battle is between the wealthiest interests and that of the Middle and not so Middle Class. It's tough to watch as this has been one result of the divided politics of the past 2 years. People don't seem to be able to reason with each other any more. It doesn't matter which side you are on either. Most elected officials seem to be doing it.

Egyptians are still protesting somewhat and now other countries are joining them. Now it's Bahrain, Libya, Yemen and the continuing fight for a voice in Iran. It seems that when a hard hand is used to quell the demonstrations, they are successful for the moment in breaking up the demonstrations, but it is sowing the seeds of violence from these peaceful demonstrators and it will end with many lives lost. It doesn't matter whose lives as all are precious. We are regressing as a civilized society and chaos seems to be inevitable.

It's a sad day for many today. Appreciate the freedom you do have but guard it well as it could easily be gone.

Egyptian protesters, now what? Affect businesses!

The best way for protesters to win this peaceful struggle to get President Mubarak to leave office now is to boycott all businesses. It will be the lack of business and the effects on business profits that will get the powerful upper class, which has supported Mubarak all these years to realize it is in their interest to get Mubarak out of office completely. In my view, this is the only thing left to do to have a successful outcome for protesters. Good luck. We are with you in spirit!

Egyptians have won, so it seems. UPDATE

The news out a few minutes ago was that President Mubarak will shortly announce he will be leaving office as soon as Constitutional changes are made to transfer power to the Vice President. The protesters have won. Egypt indeed may have won. We should all allow the joy of independence to guide our comments. It is the people of Egypt who need to decide what type of government they should have, not anyone else. Freedom is a wonderful thing and a right for all people. We shouldn't allow voices from our far right wing of the Republican Party to allow their fear of what is to come in Egypt to diminish the joy of freedom for these people. Many worry that Egypt will become a religious state under religious laws as their guide. It is not something to fear because this protest was all about jobs and being paid fair wages for the people to survive. If these stories of Mubarak leaving come true later today, I for one will be very happy for all Egyptians. Democracy can be messy, but freedom is a driving force of mankind.

UPDATE: 6:45pm

Well Mubarak disappointed everyone, except himself, because he did not quit his position as head of the Country. Demonstrators vow to b ring many more into the streets tomorrow. It has frustrated not only the protestors but also the US government because Leon Panetta had said he was resigning today. So much for U.S. Intelligence.

Rapid Changes in Egypt call for being mindful about your portfolio

The events in Egypt show how fast the contagion for the desire for freedom can ignite the passions of a people. Now add the effects of the Social networks like Facebook and Twitter and you have an instant communication vehicle. Just think a little over a week ago Egypt was not on anyone's mind. Now it is there constantly because of the media attention to it on Cable news networks. Things were fine and all of a sudden things turned quickly.

There is something to consider here when it comes to our stock markets. You see, this is what will happen when one day soon our stock markets drop and scare everyone because we too will be in uncertain times. This market rise today to 12,040 on the Dow and 1307 on the S&P 500 reminds me of the year 2000 when the stock markets surged one day and then collapsed on another. It happened that quickly. It will happen again. Are you prepared for it?

Events in Egypt and how they will affect trading on Monday

The events in Egypt continue to show no abatement of the demonstrations nor demonstrators calls for President Hosni Mubarak to step down. This will change the mindset in the Middle East. One consequence of this will be fear gripping their stock markets across the region. I expect there to be a flight to safety in market action on Monday both here, Europe and even possibly Asia. The dollar should get a boost as should the Swiss Franc. I do see our stock market with high volatility. If the events to not resolve themselves by Monday, there will be a selloff of stocks here. If things seem resolved by Monday, we could see a relief rally. Gold most likely will rise as will Silver no matter what the outcome for Monday.

Egypt adopts Democracy 2.0 from President Bush and the neocons' playbook

Democracy, Bush style, has emerged from the Middle East, most notably Egypt, as new anti-terrorist laws were approved by a small group of people, as voter turnout was low.

Quoting a BBC story, "Opposition groups have voiced fears about the wording of the articles on the new anti-terrorism law because it will be possible to bypass the constitutional guarantees protecting basic freedoms." Also, "Turnout for the vote was 27%, the justice ministry said, although some independent groups put it at 5%." The population of Egypt is about 68 Million people. This means that as few as 2.5 Million people out of the 68 Million people voted to change the Constitution and install "anti-terrorist laws" analogous to our Patriot Act. And the article adds, "The 34 constitutional amendments include a ban on the creation of political parties based on religion, and sweeping security powers."

Welcome Egypt to President Bush's type of Democracy, where we now share in a common theme, "bypassing the constitutional guarantees protecting basic freedoms." President Mubarak you have learned your lesson well from our latest interpretation of the protecting of our basic freedoms from a President and VP who have turned the Constitution upside down with the help of the current Attorney General Alberto Gonzales. Of course, we learned from you as well, for example how to "redefine" what is and what isn't torture and skirt the Geneva Convention and U.S. laws.

To read the entire BBC article click here.