The massive earthquake that has struck Japan during early morning hours here in the US is resulting in a surge in activity across the currency markets, the bond markets and the precious metals not to mention the equity markets which are generally lower across the board on the news.
Bonds immediately caught a firm bid as they continue to now look strong on the technical price charts. What QE could not do for long term interest rates, namely lower them, rising crude oil prices and their effect on economic growth have done.
With the market keeping a watchful eye on Saudi Arabia coupled with the after-effects of the earthquake in Japan, prices could move very sharply in a short amount of time. Stay alert.
"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat
Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput
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