Stocks Dropping into Final Hour on Escalating Mideast Unrest, Rising Emerging Markets Debt Angst, Yen Strength, Financial/Homebuilding Sector Weakness
Broad Equity Market Tone:
- Advance/Decline Line: Lower
- Sector Performance: Most Sectors Declining
- Market Leading Stocks: Performing In Line
Equity Investor Angst:
- Volatility(VIX) 11.80 +7.37%
- Euro/Yen Carry Return Index 144.06 -.45%
- Emerging Markets Currency Volatility(VXY) 6.59 +.76%
- S&P 500 Implied Correlation 52.10 +3.99%
- ISE Sentiment Index 99.0 -23.26%
- Total Put/Call .71 +1.43%
Credit Investor Angst:
- North American Investment Grade CDS Index 58.60 +2.10%
- European Financial Sector CDS Index 60.12 +1.05%
- Western Europe Sovereign Debt CDS Index 27.97 -1.01%
- Asia Pacific Sovereign Debt CDS Index 76.31 +2.34%
- Emerging Market CDS Index 242.58 +2.55%
- China Blended Corporate Spread Index 312.14 -.34%
- 2-Year Swap Spread 14.5 +.75 basis point
- 3-Month EUR/USD Cross-Currency Basis Swap -9.5 -2.25 basis points
Economic Gauges:
- 3-Month T-Bill Yield .03% unch.
- Yield Curve 221.0 +1.0 basis point
- China Import Iron Ore Spot $93.50/Metric Tonne -.11%
- Citi US Economic Surprise Index -13.0 +.2 point
- Citi Emerging Markets Economic Surprise Index -9.60 +2.3 points
- 10-Year TIPS Spread 2.20 unch.
Overseas Futures:
- Nikkei Futures: Indicating -159 open in Japan
- DAX Futures: Indicating -11 open in Germany
Portfolio:
- Slightly Lower: On losses in my biotech/tech sector longs
- Disclosed Trades: Added to my (IWM)/(QQQ) hedges
- Market Exposure: Moved to 25% Net Long
1 comment:
Since 1913, with the creation of the Creature from Jekyll Island, the world has been operating on a debt based money system, and will do so to the end of time. Public debt cannot be repudiated; it will be applied to every man, woman and child on planet earth; furthermore human government cannot be nullified; nor can it be thrown off; it will rule till the advent of Christ.
With the 1971 Milton Friedman Free To Choose mandate of sovereign currencies implemented by President Nixon, the US Dollar Hegemonic Empire rose in power to replace the British Empire. The most recent empire came to its zenith with the Thursday, June 5, 2014, Mario Draghi, ECB Mandate, of TLTROs and a Negative Interest Rate Policy. His word, will and way is the economic law of the Eurozone, and has pivoted the entire world from liberalism’s economic systems of capitalism, socialism, communism, into the singular economic system of regionalism.
On Wednesday, June 11, 2014, global debt deflation commenced, as the chart of the EUR/JPY currency carry trade showed a strong turn lower, as the currency traders called the Yen, FXY, higher, and the Euro, FXE, lower, on the failure of trust in the monetary policies of the world central banks to continue to stimulate investment gains, as well as global growth, with the result that investors derisked out of World Stocks, VT, Nation Investment, EFA, Global Financials, IXG, and Dividends Excluding Financials, DTN, and by which the world passed through an inflection point and entered into
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