Egypt

I said this Egyptian problem just started. In a quick re-cap, Mubarak was from the military, chosen by the military and was already in trouble before the Egyptian protests started as he was grooming his son to succeed him. That didn't sit well with the military, which is who really runs the country and has since Nasser. The protests were a gift to the military, it allowed them to remove Mubarak without staging a coupe. However, when it comes to reform, I said the Egyptian people would be disappointed if they thought they were going to get a democratically elected president without military interference. That problem has begun and will escalate into another round of protests.

Story Here

In the meantime, the US (as if we had our house of cards in order) just backed an Egyptian Bond issuance, more or less if there's a default, it's the American taxpayer that will foot the bill.

Story Here


Obviously we are way behind the information curve, but if the US is backing this government and the timing of the two events are a little ironic, then we can expect a pretty nasty "blow back".

In the meantime, take a look at EGPT

 MoneyStream daily

 3C daily

It looks like this may be an inverse H&S in the making...