Stocks Rising into Final Hour on Euro Reversal, Short-Covering, Financial/Gaming Sector Strength
Broad Market Tone:
- Advance/Decline Line: About Even
- Sector Performance: Mixed
- Market Leading Stocks: Performing In Line
Equity Investor Angst:
- ISE Sentiment Index 129.0 +14.16%
- Total Put/Call .91 +1.11%
Credit Investor Angst:
- North American Investment Grade CDS Index 79.5 -1.32%
- European Financial Sector CDS Index 138.99 +.16%
- Western Europe Sovereign Debt CDS Index 97.63 +1.29%
- Emerging Market CDS Index 238.42 -.24%
- 2-Year Swap Spread 14.25 -.25 bp
- 3-Month EUR/USD Cross-Currency Basis Swap -16.5 unch.
Economic Gauges:
- 3-Month T-Bill Yield .09% unch.
- China Import Iron Ore Spot $144.10/Metric Tonne -1.5%
- Citi US Economic Surprise Index 21.0 -.1 point
- 10-Year TIPS Spread 2.58 unch.
Overseas Futures:
- Nikkei Futures: Indicating +85 open in Japan
- DAX Futures: Indicating unch. open in Germany
Portfolio:
- Slightly Higher: On gains in my retail/medical sector longs and emerging markets shorts
- Disclosed Trades: None
- Market Exposure: 50% Net Long
1 comment:
On Monday March 11, 2013, World Stocks went supernova, as the Japanese Yen, FXY, traded lower to 101.80 in front of BoJ meeting. World Stocks, VT, rose 0.3%, US Stocks, VTI 0.3%, Nation Investment, EFA 0.3%, and Global Producers, FXR 0.2%.
Action Forex reports that the EUR/JPY closed at 125.45. Finviz reports the Euro, FXE, at 129.28, the Optimized Carry Trade ETN, ICI, at 47.96, and the Risk On ETN, ONN, at 28.63. Yahoo Finance reports Distressed Investments, FAGIX, at 9.69.
Sectors trading higher included the following:
The Too Big To Fail Banks, RWW, 0.9%, (GNW, 6.7%, C, 2.0%, WFC, 1.7%, PFG, 1.2%, BAC, 0.7%, BK, 0.4%)
Semiconductors, XSD, 0.6%
Automobiles, CARZ, 0.4%
World Banks, IXG, 0.4%
Regional Banks, KRE, 0.4%
Aerospace and Defense, PPA, 0.3%
Casinos, BJK, 0.3%
Paper and Timber Producers, WOOD, 0.3%
North American Software, IGV, 0.2%
US Infrastructure, PKB, 0.1%, Small Cap Industrials, PSCI, 0.1%, Consumer Discretionary, IYC 0.1%
Interest bearing sectors rising included the following:
Leveraged Buyouts PSP, 0.7%
Mortgage REITS, REM, 0.7%
North American Energy Partnerships, EMLP, 0.6%
Pharmaceuticals, XPH, 0.5%
Dividends Excluding Financials, DTN, 0.4%
Dividend Growth, VIG, 0.3%
Call Write Bonds, CWB, 0.2%
Utilities, XLU, 0.1%
Of note, Hedge Fund stocks rising included FIG, KKR, BEN, NTRS, AMP, IVZ, CG, SEIC, LAZ, LM, FIG; and Transportation stocks rising included R, FDX, UPS, ATSG.
Sectors trading lower included the Emerging Market Infrastructure, EMIF, -0.9%, which contains, UGP, CMHHF, CSPKF, CHOLF, ASR, CIG, SBS, EOC.
The S&P 500, $SPX, SPY, 0.4%, was led higher by SPHB, 0.6%, Too Big To Fail Banks, RWW, 0.9%, (GNW, 6.7%, C, 2.0%, WFC, 1.7%, PFG, 1.2%, BAC, 0.7%, BK, 0.4%,), XSD, 0.6%, XPH, 0.5%, CARZ, 0.4%, IXG, 0.4%.
Japan’s Banks, SMFG, rose 5.6%, MTU, 5.6%, NMR, 4.2%, and MFG, 4.8%, taking Japan, EWJ, 0.6%, and Japan Small Caps, JSC, 1.0%, higher.
Asia, EPP, rose 0.4%, being led higher by Australia, EWA, 0.6%, Australia Small Caps, KROO, 1.0%, Thailand, THD, 0.5%, and the Philippines, EPHE, 1.7%. China traded lower being led so by Shanghai Shares, CAF -.2.0%, China Minerals, CHIM -2.4%, China Industrials, CHII, -2.2%, China Small Caps, ECNS, -1.8%, China Financials, CHIX, -1.7%, China, YAO, -1.1%. South Korea, EWY, -0.7%, being led lower by SHG, -1.4%, and WF, -0.8%.
Ireland’s Bank, IRE, rose 3.3%, taking Ireland, EIRL, 0.5% higher; while the National Bank of Greece, NBG, traded 6.0% lower, taking Greece, GREK, 3.1%, lower.
The nine month risk-on, toxic debt based, yen carry trade, global stock rally, is now most likely over, as the world central banks’ monetary policies have debased both the US Dollar, $USD, and the Japanese Yen, FXY. Look for competitive currency devaluation to commence with the World’s Major Currencies, DBV, and Emerging Market Currencies, CEW, trading lower, causing investors to derisk out of stocks, VT. A see-saw destruction of fiat wealth is likely to commence, with Bonds, BND, trading higher for a while, before they also fall lower into the Pit of Financial Abandon.
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