Wednesday, May 22, 2013

Stocks Reversing Lower into Final Hour on Central Bank Worries, Rising Global Growth Fears, Technical Selling, Tech/Commodity/REIT Sector Weakness

Broad Market Tone:
  • Advance/Decline Line: Substantially Lower
  • Sector Performance: Almost Every Sector Declining
  • Volume: Around Average
  • Market Leading Stocks: Underperforming
Equity Investor Angst:
  • VIX 14.19 +6.13%
  • ISE Sentiment Index 110.0 -22.54%
  • Total Put/Call .96 +3.23%
  • NYSE Arms .98 -2.41%
Credit Investor Angst:
  • North American Investment Grade CDS Index 71.82 +2.62%
  • European Financial Sector CDS Index 126.06 -4.1%
  • Western Europe Sovereign Debt CDS Index 77.46 -12.7%
  • Emerging Market CDS Index 248.91 +.33%
  • 2-Year Swap Spread 14.75 unch.
  • TED Spread 23.75 +.5 bp
  • 3-Month EUR/USD Cross-Currency Basis Swap -15.25 -.25 bp
Economic Gauges:
  • 3-Month T-Bill Yield .04% unch.
  • Yield Curve 178.0 +7 bps
  • China Import Iron Ore Spot $123.20/Metric Tonne -.32%
  • Citi US Economic Surprise Index -19.40 -.7 point
  • 10-Year TIPS Spread 2.26 -1 bp
Overseas Futures:
  • Nikkei Futures: Indicating +8 open in Japan
  • DAX Futures: Indicating -74 open in Germany
  • Slightly Lower: On losses in my tech/medical/biotech sector longs
  • Disclosed Trades: Added to my (IWM)/(QQQ) hedges, then covered some of them
  • Market Exposure: Moved to 50% Net Long

1 comment:

theyenguy said...

Wednesday May 22, 2013, was a pivotal day in economic and political life. With all forms of fiat wealth, Stocks, VT, Commodities, DBC, Major Currencies, DBV, Emerging Market Currencies, CEW, and Credit, AGG, trading lower, on the Congressional testimony of US Federal Reserve Chairman Ben Bernanke signaling a cautious track on bond buying, and mintues of the Fed Meeting providing a blurred picture of Federal Reserve policy, the world fully pivoted from the old economy to a new economy; that is 1) from the paradigm of liberalism to the paradigm of authoritarianism, 2) from the fiat money system to the diktat money system, and 3) from the banker regime of US Dollar hegemony to the beast regime of regional governace, totalitarian collectivism, debt servitude and austerity, also known as the ten toed kingdom of regional governance.

Under liberalism bankers, corporations, government, entrepreneurs, and citizens of democracies were the legislators of economic value and were the legislators of economic life. Under authoritrianism, currency traders, bond vigilantes and nannycrats working in public private partnerships and in regional goverancce, are the legislators of economic value and are the legislators that shape one’s means and one’s ends.

A see saw destruction of fiat money, that is currencies, credit and stock wealth, has commenced as the world central banks’ monetry policies have crossed the rubicon of sound monetary policy, making “money good” financial assets bad. In the age of Authoritarianism, the only forms of genuine wealth, will be diktat and physical possession of gold, that is gold bullion or bullion in online trading vaults such as Bullion Vault.