Broad Market Tone:
- Advance/Decline Line: Substantially Higher
- Sector Performance: Almost Every Sector Rising
- Volume: Slightly Above Average
- Market Leading Stocks: Performing In Line
- VIX 16.13 -8.20%
- ISE Sentiment Index 122.0 +45.24%
- Total Put/Call .83 -9.78%
- NYSE Arms .70 -68.0%
- North American Investment Grade CDS Index 103.56 bps -4.98%
- European Financial Sector CDS Index 245.41 bps -12.0%
- Western Europe Sovereign Debt CDS Index 262.09 -3.61%
- Emerging Market CDS Index 246.78 -3.18%
- 2-Year Swap Spread 20.50 -.75 basis point
- TED Spread 36.25 +.75 basis point
- 3-Month EUR/USD Cross-Currency Basis Swap -39.5 +6.75 basis points
- 3-Month T-Bill Yield .08% -1 basis point
- Yield Curve 133.0 +8 basis points
- China Import Iron Ore Spot $116.70/Metric Tonne -.34%
- Citi US Economic Surprise Index -36.20 +3.5 points
- 10-Year TIPS Spread 2.16 +6 basis points
- Nikkei Futures: Indicating +119 open in Japan
- DAX Futures: Indicating +7 open in Germany
- Higher: On gains in my Retail, Medical, Tech and Biotech sector longs
- Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges and some of my (EEM) short
- Market Exposure: Moved to 75% Net Long
1 comment:
On Friday August 3, 2012, World Stocks, VT, reversed course and jumped nearly 3% higher, as Merkel’s coalition members signaled acceptance of ECB bond-buying.
World Stocks, VT, World Currencies, DBV, and Emerging Market Currencies, CEW, and World Treasuries, BWX, rose strongly.
This as Reuters also reports Jenz Weidmann locked in tense struggle with Mario Draghi. The powerful Bundesbank, the central bank of Europe's largest economy, is fiercely opposed to fresh ECB bond buying on the grounds that it amounts to monetary financing of governments, contravening European law,
When taken together bible prophecy of Revelation 6:1-2, and Daniel 2:30-33, as well as Revelation 13:1-4, communicates that the baton of sovereignty is being passed from sovereign nation states to regional sovereign leaders, such as Mario Draghi, and sovereign bodies such as the ECB When Mario Draghi vowed last week “to do whatever it takes” to keep the continent’s monetary union intact, he laid the groundwork for a One Euro Government, that is a Federal European Superstate existing as a political, monetary, fiscal, and economic union. Now with the proposal that German lawmakers will have veto rights over bond purchases by the euro area’s rescue funds, which will operate in tandem with the ECB under Draghi’s proposal, Germany will emerge as the preeminent Eurozone power over vassal peripheral states in a type of revived Roman empire.
Deutsche Bank rose 10%, Argentina’s BBVA, 9%, Banco Santender, STD, 7% Italy, EWI, 8%, Spain, EWP, 8%, European Financials, EUFN, 6%. World Banks, IXG, 3%, Nasdaq Community Banks, 3%, Regional Banks, KRE 3%, Brazil Financials, 7%, Financial Brokers, 5%, and The Too Big To Fail Banks, RWW 2%.
The Risk On ETN, ONN, rose 4%. Steel, SLX, jumped 5%, and Coal, KOL, 4%. Electrical Equipment Manufacturers, ETN, ROK, AME, ENS, AIMC, AMRC, BGC, seen in this Finviz Screener, 4%. Textile Manufacturers, MHK, UFI, IFSIA, rose strongly.
Boston Office Properties, BXP, took Office REITS, FNIO, higher. General Growth Properties, GGP, and Simon Property Group, SPG, took Retail Reits higher. Health Care REITS, VTR, and SBRA, took Residential REITS, REZ, to a new high
Philip Morris, PM, Reynolds American, RAI, and Exxon Mobile, XOM, took Large Cap Dividend, DLN, to a new high.
Turkey, TUR, blasted 5% higher to a new high; Singapore, EWS, climbed 2% higher to a new high; Malaysia, EWM, rose to multiple top high. South Africa, EZA, jumped 5% and Sweden, EWD, 4%.
Commodities, DBC, traded higher. USO, rose 4% posting its biggest gain in a month. Gasoline, UGA, continued its rally 3% higher.
The US Dollar $USD, UUP, traded lower, as the Euro, FXE, rose 1.6%, taking it to a weekly gain of 0.6%. Commodity Currencies, CCX, rose 0.4%, for the week, with the Australian Dollar, FXA, rising 0.9%, and the Canadian Dollar, FXC, 0.6%.
Bonds, BND, turned parabolically lower. as US Government Debt fell sharply with ZROZ, EDV, and TLT, plummeted. The charts of Short to Medium Term Corporate Bonds, LQD, and Emerging Market Bonds, EMB, show a topping out. Junk Bonds, JNK, traded higher with stocks. The Flattner ETF, FLAT, has now fallen strongly lower in value. A steepening 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, is reflected in the Steepner ETF, STPP, rising in value, causing deflation in bonds. World Government Bonds, BWX, traded high on rising world currencies, DBV.
The see saw destruction of fiat wealth is now underway as the US Dollar, USD, UUP, is traded below its recent high. Competitive currency devaluation, in all currencies, is now underway, leading the world along what FA Hayek terms The Road to Serfdom. Wealth can only be preserved by dollar cost averaging into the physical possession of gold, or by investing in gold on internet trading platforms such as Gold Is Money, or Bullion Vault. Although Gold, GLD, traded lower on the week to 155; its chart pattern still shows it to be in breakout above 152.
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