Tuesday, July 23, 2013

Stocks Lower into Final Hour on Rising Global Growth Fears, Rising Energy Prices, Technical Selling, Biotech/Discretionary Sector Weakness

Click Here for Today's Market Take.

Broad Equity Market Tone:
  • Advance/Decline Line: Slightly Lower
  • Sector Performance: Mixed
  • Volume: Below Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 12.60 +2.52%
  • Euro/Yen Carry Return Index 137.12 +.07%
  • Emerging Markets Currency Volatility(VXY) 8.77 -2.66%
  • S&P 500 Implied Correlation 50.83 +1.72%
  • ISE Sentiment Index 75.0 -27.88%
  • Total Put/Call .91 -3.19%
  • NYSE Arms .89 +21.74% 
Credit Investor Angst:
  • North American Investment Grade CDS Index 74.45 +2.61%
  • European Financial Sector CDS Index 146.75 +4.1%
  • Western Europe Sovereign Debt CDS Index 91.49 -1.62%
  • Emerging Market CDS Index 277.54 +2.18%
  • 2-Year Swap Spread 17.50 -.5 bp
  • TED Spread 25.0 -1.0 bp
  • 3-Month EUR/USD Cross-Currency Basis Swap -9.5 -.25 bp
Economic Gauges:
  • 3-Month T-Bill Yield .02% +1 bp
  • Yield Curve 219.0 +1 bp
  • China Import Iron Ore Spot $131.90/Metric Tonne +.30%
  • Citi US Economic Surprise Index -8.90 +.2 point
  • Citi Emerging Markets Economic Surprise Index -29.90 -.6 point
  • 10-Year TIPS Spread 2.18 -2 bps
Overseas Futures:
  • Nikkei Futures: Indicating +22 open in Japan
  • DAX Futures: Indicating +18 open in Germany
Portfolio: 
  • Slightly Lower: On losses in my biotech sector longs and emerging markets shorts 
  • Disclosed Trades: None
  • Market Exposure: 50% Net Long

1 comment:

theyenguy said...

The days of risk on investing, ONN, are over, though, done, and finished. Small Cap Pure Value, RZV, and Biotechnology, IBB, both traded lower today from market highs.

The short selling opportunity of a lifetime has developed. Look for strong derisking to come out of fiat asset invesment leaders, XIV, FDN, CARZ, PBS, IGV, IBB, RZV, PSCI, PBD, PPA, IAI, SPHB, SMH, XRT, PJP, EWN, PSP, UJB, KRE, TAN, RXI, WOOD, FLM, LNKD, RF, LYG, SMFG, BPOP, SLM, JPM, NNI, UBS, BLK, NMR, MKTAY, seen in this Finviz Screener ... http://tinyurl.com/l9l3bmp

The slight trade lower seen in the chart of the S&P 500, $SPX, SPY, to $1,692, very likely reflects a market high yesterday Monday, July 22, 2013, at 1696, as an Elliott Wave 5 High, as S&P High Beta, SPBH, traded, 0.3%, lower today, and, S&P Transports, XTN, traded 1.2% lower, today. Large Cap Financials, JKF, including Life Insurance companies, such as, PRU, seen in this Finviz Screener, rose to new rally highs, suggesting that a market top in the S&P 500 has been attained. S&P overweight Exxon Mobil, XOM, traded to an all time new high of 95.

Jesus Christ, operating in the economy of God, that is the political and financial administration plan of completing every age, epoch, era and time period, bringing forth its total fufillment, likely pivoted the world fully out of the era of investment choice and into the age of ditkat, today July 23, 2013; a process which He began on May 24, 2013, when the Interest Rate on the US Ten Year Note, ^TNX, rose strongly to 2.01%, serving as an “extermination event” which terminated Liberalism and introduced Authoritarianism; this rate rose again today from its recent low of 2.49% to 2.52%.


Volatility, ^VIX, finally rose. The walking dead market, that is the zombie market is likely over. Liberalism’s schemes of credit liquidity, AGG, FLAT, and carry trade, ICI, funded safehaven investing probably came to an end today, Tuesday, July 23, 2013. The safe haven rally in US Based stocks appears to be over, as the premium of Biotechnoloy over Emerging Markets, seen in the chart of IBB:EEM, has exhausted. And the safehaven rally in the Netherlands, EWN, appears over as its Electronic Equipment Manufacturer, PHG, and its Scientific Instrument Manufacturer, ST, traded lower. And the safehaven rally in Design Build Companies, FLM, appears over as its leader, JEC, traded lower. And the safe haven rally in Leveraged Buyouts, PSP, appears over as two of its leaders, IP, and GE, traded lower. There now be no more safe haven investments from the terror of bond vigilantes calling interest rates higher globally and the currency traders following suit with competitive currency devaluation.

The rise of Authoritarianism’s schemes of debt servitude, such as Greek Bailout III, and the Cyprus Bank Deposit Bailin, mean that wealth can only be preserved in the physical possession of gold bullion, or in Internet trading vaults such as Gold Is Money or Bullion Vault.