Monday, November 11, 2013

Stocks Rising Slightly into Final Hour on Less European Debt Angst, Short-Covering, Investor Performance Angst, Retail/Healthcare Sector Strength

Broad Equity Market Tone:
  • Advance/Decline Line: About Even
  • Sector Performance: Most Sectors Rising
  • Volume: Light
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 12.47 -3.33%
  • Euro/Yen Carry Return Index 138.68 +.42%
  • Emerging Markets Currency Volatility(VXY) 9.61 +2.13%
  • S&P 500 Implied Correlation 37.56 -4.98%
  • ISE Sentiment Index 107.0 +4.90%
  • Total Put/Call .80 -3.61%
  • NYSE Arms .83 +74.05% 
Credit Investor Angst:
  • North American Investment Grade CDS Index 71.46 -.45%
  • European Financial Sector CDS Index 103.62 -2.47%
  • Western Europe Sovereign Debt CDS Index 65.17 -1.99%
  • Emerging Market CDS Index 299.69 -.09%
  • 2-Year Swap Spread 11.5 unch.
  • TED Spread 19.0 +.5 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -3.5 -.75 basis point
Economic Gauges:
  • 3-Month T-Bill Yield .06% unch.
  • Yield Curve 244.0 unch.
  • China Import Iron Ore Spot $135.90/Metric Tonne unch.
  • Citi US Economic Surprise Index 18.90 -.5 point
  • Citi Emerging Markets Economic Surprise Index -10.20 +2.4 points
  • 10-Year TIPS Spread 2.17 unch.
Overseas Futures:
  • Nikkei Futures: Indicating +77 open in Japan
  • DAX Futures: Indicating +9 open in Germany
Portfolio: 
  • Higher: On gains in my tech/retail/biotech sector longs and emerging markets shorts
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges, then added them back
  • Market Exposure: 50% Net Long

1 comment:

theyenguy said...

On Monday, November 11, 2013, the EUR/JPY traded higher as the Japanese Yen, FXY, traded higher to 17.19, at the middle of a broadening top pattern, suggesting a soon coming trade lower in this currency. The Euro, FXE, traded higher than the Yen, to 132.16, resulting in taking European Stocks, EZU, higher on the day.


The Australian Dollar, FXA, led Major World Currencies, DBV, lower, forcing Australia, EWA, and Asia Excluding Japan, EPP, lower. And The India Rupe, ICN, led Emerging Market Currencies, CEW, lower, forcing India, INP, lower.


Ireland, EIRL traded higher. Emerging Market Nations trading lower included Turkey, TUR, Chile, ECH, Indonesia, IDX, India, INP, and the Philippines, EPHE. Major Countries trading lower included Australia, EWA, New Zealand, ENZL, Russia, RSX, and South Korea, EWY.


Sectors trading higher included Solar, TAN, Pharmaceuticals, PJP, Transportation, XTN, Copper Miners, COPX, Resorts and Casinos, BJK, and Energy Services, OIH


US Investment Brokers, IAT, traded higher; while Japanese Investment Broker, NMR, traded lower.


Retailers, XRT, led so by WMT, COST, JWN, LTD, and KORS rallied strongly. The rally in Retailers, carried through to US Credit Provider, MA, traded strongly higher; while Japanese Credit Provider, IX, traded strongly lower, and carried the rally carried through to Advertising Agencies, as well as to Apparel Manufacturers.


Social Media, SOCL, Regional Banks, KRE, traded lower; and Mortgage REITS, REM, traded strongly lower; it is the financial market’s loss leader; this as Zero Hedge posts October Mortgage Purchase Applications Collapse To Decade Lows


The bond vigilantes in calling the Interest Rate on the US 10 Year Note, ^TNX, higher, from 2.48%, on October 23, 2013, as well as in Steepening the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, seen in the Steepner ETF, STPP, steepening, is destroyed fiat money, that is Credit, AGG, Currencies, DBV, and CEW, and Stocks, VT.


The death of fiat money is seen first in the periphery, with the destruction of the Emerging Market debt trade, EMB, as well as investment in Emerging Market Infrasture, EMIF, which has enabled currency traders to commence competitive currency devaluation, in Emerging Market Currencies, CEW, such as the Brazilian Real, BZF, which has delveraged and derisked investors out of Emerging Market Investments, EEM, such as Brazil Small Caps, EWZS. And the death of fiat money is seen second in the high yield debt trade, with the sell off of Junk Bonds, JNK, Ultra Junk Bonds, UJB.


And the death of fiat money is seen in the Euro Yen Currency Carry Trade, EUR/JPY, trading lower from October 23, 2013, casing disinvestment and derisking out of Global Financials, IXG, the European Financials, EUFN, UBS, CS, NBG, SAN, DB, South Korea Banks, KB, SHG, UK Banks, RBS, BCS, and Brazil Banks, BBD, ITUB, BBDO, BSBR


World central bankers and regional nannycrats are introducing diktat money to replace fiat money, with the aim of establishing regional security, stability, and sustainability.


Jesus Christ, acting in the economy of God, that is in the administration of all things economic and political, a concept presented by the Apostle Paul in Ephesians 1:10, enabled the bond vigilantes to call the Interest rate higher on the US Ten Year Note, ^TNX, higher from 2.48% on October 2013, pivoting the world out of liberalism’s fiat money system, into authoritarianism’s diktat money system.

With the death of fiat money, one no longer has economic life in investment choice but in diktak, as regional integration, is the dynamo of regionalism; which is replacing global growth and trade, which was globalism’s dynamo of crony capitalism, European socialism and Greek socialism