Stocks Dropping into Final Hour on Rising Emerging Markets Debt Angst, Global Growth Concerns, Earnings Worries, Healthcare/Commodity Sector Weakness
Broad Equity Market Tone:
- Advance/Decline Line: Substantially Lower
- Sector Performance: Every Sector Declining
- Market Leading Stocks: Underperforming
Equity Investor Angst:
- Volatility(VIX) 13.71 +8.21%
- Euro/Yen Carry Return Index 137.01 -1.51%
- Emerging Markets Currency Volatility(VXY) 9.35 +2.52%
- S&P 500 Implied Correlation 40.73 +10.49%
- ISE Sentiment Index 105.0 +38.16%
- Total Put/Call .95 +4.40%
Credit Investor Angst:
- North American Investment Grade CDS Index 73.28 +.80%
- European Financial Sector CDS Index 110.02 -4.36%
- Western Europe Sovereign Debt CDS Index 66.04 -1.43%
- Emerging Market CDS Index 287.78 +2.51%
- 2-Year Swap Spread 11.75 -.25 basis point
- TED Spread 18.25 -1 basis point
- 3-Month EUR/USD Cross-Currency Basis Swap -4.0 unch.
Economic Gauges:
- 3-Month T-Bill Yield .06% +1 basis point
- Yield Curve 232.0 -3 basis points
- China Import Iron Ore Spot $136.90/Metric Tonne -.15%
- Citi US Economic Surprise Index 13.0 +12.6 points
- Citi Emerging Markets Economic Surprise Index -12.60 -.9 point
- 10-Year TIPS Spread 2.17 -2 basis points
Overseas Futures:
- Nikkei Futures: Indicating -230 open in Japan
- DAX Futures: Indicating -75 open in Germany
Portfolio:
- Slightly Higher: On gains in my emerging markets shorts and index hedges
- Disclosed Trades: Added to my (IWM)/(QQQ) hedges
- Market Exposure: Moved to 25% Net Long
1 comment:
The huge asset bubbles in equities and in debt, that came via interventionism of the world central banks, was pricked on October 23, 2013, and then burst today November 7, 2013.
The seesaw destruction of fiat money accelerated as the Euro, FXE, and European Debt, EU, plummeted, forcing Eurozone Stock, EZU, European Financials, EUFN, and Gold, GLD, lower, which led Commodities, DBC, lower, after Reuters reported ECB Unexpectedly Announced Cuts In Interest Rates; the fall of these forced the Interest Rate on the US Ten Year Note down to 2.61%, which caused Aggregate Credit, AGG, to rise.
This sawing asunder of fiat money is seen in both the world’s largest equity ETF, VTI, and the world’s largest credit ETF, BOND, now both falling lower in value.
Of note equities of all types are no longer able to leverage higher over credit, as the twin spigots of liberalism’s leveraged speculative investment, these being the debt trade, seen in Junk Bonds, JNK, and currency carry trades, seen in the EUR/JPY, both trading lower in value. Investors are no longer interested in convertible securities, as is seen in Barclays Convertible Securities, CWB, trading parabolically lower; the age of financialization of stocks, and the securitization of debt is over, through, finished and done.
With US Stocks are no longer leveraging higher over US Ten Year US Treasury Bonds, VTI:TLT, and Eurozone Stocks are no longer leveraging higher over EU Credit, EZU:EU, the sovereignty of democratic nation states, EFA, and their banker driven, IXG, seigniorage is history.
The era of liberalism, and its monetary policies of investment choice, has failed on the liberalization of credit. QEs whether they be by the US Fed, the ECB, the BoJ, or the PBOC, not only do not work, they are now turning money good investments bad. And as a result, economic conditions, in particular economic growth can no longer be stimulated by liberal credit policies of the world central banks.
World Stocks, VT, -1.4%, Nation Investment, EFA, -1.6%, and Global Financials, IXG, -1.4, with Asset Managers, such as Blackrock, BLK, -2.6%, India Earnings, EPI, -3.2%, Chinese Financials, CHIX, -1.7%, Brazil Financials, BRAF, -1.4%, and European Financials, EUFN, -1.4%.
The BRICS, EEB, -2.0, with Brazil, EWZ, -2.6, Russia, RSX, -1.4, India, INP, -2.1, and China, YAO, -1.6.
The Emerging Markets, EEM, -1.8, with Philippines, EPHE, -3.2, Argentina, ARGT, -2.9, Poland, EPOL, -2.9, Egypt, -2.7, South Africa, EZA, -2.2, New Zealand, ENZL, -2.0, Thailand, THD, -1.9, Indonesia, -1.7.
Norway, NORW, -2.9, Nikkei, NKY, -2.4, The UK, EWU, -2.0, US Small Caps, IWM, -1.7, Sweden, EWD, -1.7, Eurozone, EZU, -1.7, with Italy, EWI, -3.7, Spain, EWP, -2.8, Netherlands, EWN, -1.8
Post a Comment