January 31, 2011
Good morning. A significant sell-off last Friday left the SPY down slightly on what had been a positive week, with the SPY closing down .65 for the week at 127.72 (.5%). The VIX closed up 8.7% but still was not that elevated at 20.07. Most of the Friday sell-off was attributed to the spreading political issues in the Middle East (as well as F, AMZN, and MSFT earnings), as uncertainties surrounding the future of Egypt and the Suez Canal took center stage. As of now, to the extent that anyone can predict the outcome of unrest due to 30 odd years of heavy-handed rule, the situation does not look dire or likely to spread rapidly or violently to the surrounding countries.