- Large-Cap Growth -.47%
- 1) Gaming +1.91% 2) Steel +.84% 3) Airlines +.19%
- IRM, MEI, WUBA, YOKU, NBR, BKS and SCHN
- 1) BKS 2) D 3) CNP 4) ADT 5) BBBY
- 1) KR 2) AA 3) CLF 4) CAG 5) TWTR
Thursday, June 26, 2014
Bull Radar
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The Bull Flattening continued, as is seen in the Flattner ETF, FLAT, rising in value. The 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, flattened, as is seen in the Steepner ETF, STPP, trading lower in value. The 10 30 yield curve appears to have achieved maximum flattening, suggesting that the rally in US Treasuries, TLT, while it may continue, is approaching completion.
The Interest Rate on the US Ten Year Note, ^TNX, traded lower to 2.53%, and appears that it could fall once again to 2.49%. Of note, Premium REITS, KBWY, Closed End Funds, GCE, Mortgage REITS, REM, and Energy Partnerships, AMJ, EMLP, MLPJ, Global Real Estate, DRW, Financial Preferreds, PGF, traded to a new all time highs on the lower rate; and Leveraged Buyouts, PSP, Global Utilities, DBU, and International Telecom, IST, traded near their previous highs, while Dividends Excluding Financials, DTN, traded lower.
The trade lower in the Benchmark Interest Rate, reinvigorated these the debt trade, and carry trade darlings, that is the Global Wireless, Utility, and Telecom Stocks, great short selling opportunities.
On Thursday, June 26, 2014, a double top high in Credit Investments, AGG, was nearly achieved as the European Summit convened, and as investors sought a “safe haven” investment from falling World Stocks, ACWX. Chinese Credit, DSUM, traded to a new rally high, supporting the Chinese Yuan, CYB. And Eurozone Credit, EU, rose near its previous multiple top rally high, supporting European Stocks, EZU, from selling off, despite a falling EUR/JPY, coming from a rallying Yen, FXY, over a failing to rally Euro, FXE. The stronger Yen, FXY, has driven the Japanese Small Caps, JSC, much higher over Japanese Stocks, EWJ.
Yet Floating Rate Note, FLOT, traded lower, suggesting that there be no more risk free money. And Junk Bonds, JNK, traded lower, confirming that Pursuit of Yield Investing is history.
The take-away concept is that the investor’s greed has turned, specifically that the monetary policies of the world central banks monetary policies have crossed the rubicon of sound monetary policy and has made money good “investments bad”, with the European Financials, EUFN, and Nation Investment in Ireland, EIRL, Greece, Europe Small Cap Dividends, DFE, as well as Aerospace and Defense, PPA, the worst of risk assets. Clearly NBG, IRE, DB, CS, UBS, and BCS, are failed investments.
The Eurozone’s leading banks are insolvent financial institutions, and the the European periphery countries such as Ireland and Greece are insolvent sovereigns. Insolvent banks and insolvent nations cannot provide investment seigniorage, and cannot support regional and global economic growth.
As foretold in Bible Prophecy of Revelation 13:1-4, out of waves of Club Med, sovereign, banking, and corporate insolvency, new sovereignty, that of the Beast Regime, and new seigniorage, that is the seigniorage of regional fascism, will rise to provide governance and economic experience through diktat money, that is the mandates of regional fascist leaders for regional security, stability, and sustainability.
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