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The commodity bubble just unburst itself!But first, the scoreboard:

Dow: +46.68
NASDAQ: +15.88
S&P 500: +6.24

And now, the top stories:

  • There were two big stories that carried over from last week to this one. The first was last week’s commodity crash, which saw oil and silver get mauled. The second one was turmoil in the Eurozone, as a spate of rumours about a Greek exit slammed the market late on Friday. For a look at the motivations of the rumours, see here >
  • There were some other interesting geopolitical events over the weekend, including the deterioration of the Egyptian situation, as dreams of revolution and democracy come undone.
  • As it happened, it did turn out to be an active weekend on the European sovereign debt front. There was a meeting of top leaders over the weekend, in which it was agreed that Greece needed some kind of restructuring. The idea that Greece is going to leave the euro anytime soon seems totally wrong.
  • As talk heats up that Greek might get a restructuring (lower interest rates) attention turns to the other PIIGS — Ireland and Portugal — would would also like a revision to its bailout. Meanwhile, this morning, Greece was hit by multiple ratings agency downgrades, but nobody cared.
  • Meanwhile, the commodity plunge reversed itself viciously. Silver and oil ripped higher, with the latter going back over $103 for a rebound of nearly 9%! Big hedge funds that got clobbered last week surely recouped some of their losses in the buying.
  • And that was basically the story of the day. There wasn’t much corporate news, and in the US there was no major economic news, although Zillow came out with a nasty report on Q1 home values.
  • Other than the big commodity and stock rally, the 10-year yield (ominously) continues to fall, hitting its lows of the day. More and more investors are betting against Bill Gross.
  • For a look at some big hedge funds that got slaughtered in the commodity plunge, see here >