Stocks Slightly Higher into Final Hour on Central Bank Hopes, Less Eurozone/Asian Debt Angst, Healthcare/Metals & Mining Sector Strength
Broad Equity Market Tone:
- Advance/Decline Line: Modestly Higher
- Sector Performance: Mixed
- Market Leading Stocks: Underperforming
Equity Investor Angst:
- Volatility(VIX) 12.51 -.24%
- Euro/Yen Carry Return Index 136.93 -.66%
- Emerging Markets Currency Volatility(VXY) 9.08 -3.51%
- S&P 500 Implied Correlation 50.11 -2.43%
- ISE Sentiment Index 123.0 -7.53%
- Total Put/Call .95 +20.25%
Credit Investor Angst:
- North American Investment Grade CDS Index 72.59 -.01%
- European Financial Sector CDS Index 140.98 -5.90%
- Western Europe Sovereign Debt CDS Index 93.0 unch.
- Emerging Market CDS Index 271.92 -2.41%
- 2-Year Swap Spread 18.0 +.25 bp
- 3-Month EUR/USD Cross-Currency Basis Swap -9.25 -.25 bp
Economic Gauges:
- 3-Month T-Bill Yield .01% -1 bp
- China Import Iron Ore Spot $131.50/Metric Tonne -.15%
- Citi US Economic Surprise Index -9.10 +.4 point
- Citi Emerging Markets Economic Surprise Index -29.30 +1.7 points
- 10-Year TIPS Spread 2.20 unch.
Overseas Futures:
- Nikkei Futures: Indicating +68 open in Japan
- DAX Futures: Indicating -3 open in Germany
Portfolio:
- Slightly Higher: On gains in my medical/biotech/retail sector longs
- Disclosed Trades: None
- Market Exposure: 50% Net Long
1 comment:
On Monday, Gold, $GOLD, rose so strongly that it drove the US Dollar, $USD, to trade lower at $82.32. Zero Hedge reported over the weekend that Gold breaks above $1300 as shorts cover most in 4 months. Gold, $GOLD, closed higher at its 50 day moving average at $1,334. The Gold ETF, GLD, closed up 3.0% at 128.84. And the Silver ETF, SLV, closed up 4.7% at 19.77.
Any presentation of the traditional measure of wealth, that being the S&P 500, SPY, should now be presented with a presentation of Gold, GLD, as the very basis of wealth is transitioning from fiat to physical. Bond vigilantes gained control of the credit market calling the Interest Rate on the Ten Year Note, ^TNX, rising to 2.01% on May 24, 2013, and that this was an “extermination event” which terminated Liberalism, ending both its policy of investment choice and its credit schemes, such as, free trade agreements, financial deregulation, leveraged buyouts, nation investment, currency carry trade investing, securitization of debt, dollarization, financialization of stocks and ETFs, such as corporate bonds which convert into stocks, all of which created capital for corporations to operate and revenue for governments to operate. Debt deflation is underway as currency traders are selling Major World Currencies, DBV, and Emerging Market Currencies, CEW, short. In the age of Authoritarianism, wealth can only be preserved by investing in and taking possession of gold bullion either in physical form or by trading on an Internet Platform such as Bullion Vault or Gold is Money.
The medical, biotechnology and retail sectors have topped out and one shold now be short, not long.
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