Stocks Falling into Final Hour on Global Growth Fears, Rising Emerging Markets Debt Angst, Yen Strength, Biotech/Homebuilding Sector Weakness
Broad Equity Market Tone:
- Advance/Decline Line: Lower
- Sector Performance: Most Sectors Declining
- Market Leading Stocks: Underperforming
Equity Investor Angst:
- Volatility(VIX) 13.46 +2.05%
- Euro/Yen Carry Return Index 147.68 -.08%
- Emerging Markets Currency Volatility(VXY) 8.43 +.12%
- S&P 500 Implied Correlation 57.22 +1.63%
- ISE Sentiment Index 136.0 +20.35%
- Total Put/Call .96 +29.73%
Credit Investor Angst:
- North American Investment Grade CDS Index 66.20 +1.28%
- European Financial Sector CDS Index 79.01 +.81%
- Western Europe Sovereign Debt CDS Index 34.30 -2.83%
- Asia Pacific Sovereign Debt CDS Index 87.06 +.70%
- Emerging Market CDS Index 285.11 +3.57%
- China Blended Corporate Spread Index 348.72 -.28%
- 2-Year Swap Spread 9.75 -4.0 basis points
- TED Spread 21.25 +.5 basis point
- 3-Month EUR/USD Cross-Currency Basis Swap -.75 +.25 basis point
Economic Gauges:
- 3-Month T-Bill Yield .02% unch.
- Yield Curve 224.0 -7.0 basis points
- China Import Iron Ore Spot $112.20/Metric Tonne -.27%
- Citi US Economic Surprise Index -27.40 -4.5 points
- Citi Emerging Markets Economic Surprise Index -26.80 -1.4 points
- 10-Year TIPS Spread 2.22 +1.0 basis point
Overseas Futures:
- Nikkei Futures: Indicating -56 open in Japan
- DAX Futures: Indicating +21 open in Germany
Portfolio:
- 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: 50% Net Long
1 comment:
April 23, 2014, marked a pivotal day in the world’s economic history, as currencies are no longer floating; they are sinking, with the result that democratic nation state governance will soon crumble.
The death of currencies commenced April 23, 2014. Major World Currencies, DBV, such as the British Pound Sterling, FXB, and the Australian Dollar, FXA, and Emerging Market Currencies, CEW, such as the India Rupe, ICN, traded lower, and the Chinese Yuan, CYB, on the failure of credit in China and in the Eurozone.
Investors do not trust the PBOC banking leaders, as evidenced by the trade lower in Chinese Financials, CHIX, and they do not trust Mario Draghi either to sustain investment opportunities, as evidenced by the ongoing trade lower in the National Bank of Greece, NBG, and the European Financials, EUFN.
A new currency regime is coming out of the failure of credit both in China and in the Eurozone: it will be the regime of regional diktat money, something that is implicit in Daniel’s Statue of Empires, seen in bible prophecy of Daniel 2:25-45, where the two iron legs of global hegemonic power, these being the UK and the US, flow into the ten toes of iron diktat and clay totalitarian collectivism; these toes are the same reality seen in the governance of the ten horns, that is the ten world regions, and the totalitarian collectivism experience of mankind’s seven institutions, foretold in the Beast prophecy of Revelation 13:1-4.
Currency deflation is underway and it is going to be terrifically economically deflationary. Fiat money is failing; yes money is deflating in value. Currencies are the wheels that economies run on; their value comes from the coinage of sovereign authority. Now with the Benchmark Interest Rate, $TNX, rising, from 2.48% since October 28, 2013, destroying the value of money, sovereigns will be losing their shirts, and investors their skins, as the wheels of the world’s economies literally disintegrate causing the national economies to crash and burn.
New money will be coming from new sovereigns, that being regional sovereign economic leaders whose policies of diktat and schemes of debt servitude coin the new money, that being diktat money, and is defined as the word, will and way of regional leaders used to establish regional security, stability and sustainability.
Another word for credit is trust. Investors greed has turned to fear; fear that debtors will not repay lenders, with the result that the Pursuit Of Yield Investments. .... http://tinyurl.com/m27e3nr .... which underwrote the age of credit, are now trading lower.
Global ZIRP, and the currency carry trade investing, such as the GBP/JPY, which drove up the value of the UK Small Caps, EWUS, as well as the debt trade, such as Prudential, PUK, it provided, ended on April 24, 2014, as the failure of credit, drove currency traders to sell the British Pound Sterling, FXB, relative to the Japanese Yen, FXY.
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