Elections Everywhere and Little Democracy to Drink: Venezuela and Pakistan.
This weekend is poised to present two elections of highly dubious democratic credentials. In Venezuela the Maduro government has brought the nation to financial an economic penury. There is every reason to assume that that is too the case in the electoral realm too. Most Venezuelans will stay home and not participate as a result. Venezuela is an important producer of crude oil. Ranked number 11 in the world she produces 2.277m barrels per day. Chaos and stagnation in the country has had and may continue to have a serious effect on the world’s crude markets. We watch with wary caution. Pakistan is also heading to the polls and the situation is only slightly less corrupted. The splintered opposition and the heavy handed ruling party have their finger heavily on the scale. Then in Pakistan there is always the bolshie military to consider. They too are warily monitoring the event. Pakistan is not an economically significant producer. Its main product is political risk and unrest which it does indeed export in quantity. See: Dr. Abdul Qadeer Khan. Stay tuned for the outcomes.
The Japanese Yen continues its 10 day march in strength against the Yen. We are looking for it to reach the 111.50 resistance level for some corrective action to occur.
The US stock index of high technology stocks is leading the way in the US equity markets up up and away. The price levels of all of the major US indices are very close to their pre February decline levels. A bit more to go and they will have made mad a full recovery. What happens after that point is another story
In a nearly 3 year straight decline Sugar has been a consistently performing short potion for us. The oversupply of the highly subsidized agricultural commodity is forcing price down worldwide. The reasons for this seeming madness are liege and not our subject but one is reminded of the quote by V.I. Lenin that “capitalists will sell us the rope with which we will hang them