Oil prices continue higher despite Saudi's assertion that they will make up for Libya's supply disruption. The market is pricing for a Saudi revolution.



The U.S. dollar is normally a safe haven during periods of foreign turmoil. Here, we see just the opposite. The market is pricing for a Saudi revolution, which would completely derail the global economy. The Fed will have to print money to support asset prices. You are possibly seeing the birth of a severe inflationary period. If the Fed does not implement a QE3 to support equities, the dollar is still no safe haven as we are the world's #1 oil consumer.



Institutional accumulation of Chesapeake Energy before Middle East unrest. Severe oil supply disruption is the catalyst for a large scale conversion to natural gas. Natural gas is the next energy bull market, and the smart money is already in. Nat gas, the commodity, will not spike until actual demand presents.



Where is there still opportunity? Here is a chart of Market Vectors Russia ETF. Russia stands to BENEFIT from higher crude oil costs and it is also the world's largest nat gas producer. The spike in crude has not weighed down the RSX. The U.S. S&P and EEM (emerging markets) have underperformed the RSX. The tape says risk OFF. THIS is the chance to enter before THEY do. RSX 3/7/11



RSX outperforming the SPY and EEM during the current spike in oil. In fact, it has actually risen about 10%.



Rising oil prices has pushed the RSX past the SPY and EEM, which WERE outperforming.

If there is a safe haven throughout this crisis, Russia will be it, and that is why money is flowing INTO the RSX.