I was watching the brouhaha with the Dubai Ports World affair with a little amusement. According to NPR, most of the American ports are run by foreign companies and all of the security details carried out by various American government agencies. Inconvenient facts, however, never stood in the way of members of the Congress itching to make a point of their concern for homeland security. It is somewhat ironic that a staunchly liberal outlet like NPR is actually defending the administration and free market principles.
If this deal is to be blocked, and it is quite probable, expect the OPEC contries to withdraw from recycling petrodollar into US treasuries and deploy those vast sums elsewhere in the world (e.g. the East) and into gold. Like the blockage of the Unocal deal before it, this "buy our bonds, but don't spend it" message is becoming louder and more ominous by the minute. Considering how much the US economy depends on the foreign purchasing of treasuries to keep down the interest rates -- oh, well, let's keep some civility here, so instead of commenting on the intelligence of certain lawmakers, I think I'll just buy some more gold.
In the meantime, I added to my FXI position first mentioned here. I had a buy stop limit above the previous high of $72.40, but missed due to the small gap up yesterday. I decided to chase a little and added 100 shares at $73.98 as the MACD crossed over today. Elsewhere in the market, oils continue to head down, consistent with the seasonal softness during the "sholder months" between winter heating oil season and the summer driving season. I take a longer term view here and will hold through this period. I also expect more weakness in uranium and coal stocks for weeks going forward. My plan is to pick up some leading names like CCJ and FDG on dips.