Stocks Falling into Afternoon on Rising Eurozone Debt Angst, Rate Worries, Rising Mideast Unrest/Russia-Ukraine Tensions, Tech/Biotech Sector Weakness
Broad Equity Market Tone:
- Advance/Decline Line: Substantially Lower
- Sector Performance: Almost Every Sector Declining
- Volume: Slightly Above Average
- Market Leading Stocks: Underperforming
Equity Investor Angst:
- Volatility(VIX) 12.0 +5.91%
- Euro/Yen Carry Return Index 144.29 -.27%
- Emerging Markets Currency Volatility(VXY) 5.87 -.68%
- S&P 500 Implied Correlation 49.95 +2.52%
- ISE Sentiment Index 80.0 -21.57
- Total Put/Call .89 -11.88
Credit Investor Angst:
- North American Investment Grade CDS Index 57.37 +2.56%
- European Financial Sector CDS Index 66.96 +7.22%
- Western Europe Sovereign Debt CDS Index 32.89 +3.79%
- Asia Pacific Sovereign Debt CDS Index 70.86 +.88%
- Emerging Market CDS Index 232.20 -.19%
- China Blended Corporate Spread Index 297.67 +.06%
- 2-Year Swap Spread 14.0 -.75 basis point
- TED Spread 21.25 -1.25 basis points
- 3-Month EUR/USD Cross-Currency Basis Swap -11.25 unch.
Economic Gauges:
- 3-Month T-Bill Yield .012% +1 basis point
- Yield Curve 206.0 -4.0 basis points
- China Import Iron Ore Spot $96.50/Metric Tonne +.63%
- Citi US Economic Surprise Index -13.60 -2.4 points
- Citi Emerging Markets Economic Surprise Index -6.30 +1.3 points
- 10-Year TIPS Spread 2.24 -1.0 basis point
Overseas Futures:
- Nikkei Futures: Indicating -54 open in Japan
- DAX Futures: Indicating +9 open in Germany
Portfolio:
- Slightly Higher: On gains in my index hedges and emerging markets shorts
- Market Exposure: 25% Net Long
1 comment:
On Tuesday July 8, 2014, fears over the solvency of Greece, GREK,and sustainability of its Bank arose, as The National Bank of Greece, NBG, Ireland’s Bank, IRE, Banco Santander, SAN, as well as Lloyds Banking Group, LYG, drove European Financials, EUFN, lower, as Bloomberg reports Greece Resists Troika on Third Bailout as Mario Draghi Protests Delays.
In addition to the trade lower in the European Financials, EUFN, Nomura Holdings, NMR, Banco Santander Brazil, BSBR, Argentina Bank, BBVA, Bank of America, BAC, Regional Banks, KRE, led Global Financials, IXG, lower, evidencing the failure of credit which commenced on July 1, 2014,with the trade lower in Aggregate Credit, AGG.
The trade lower in Stockbrokers, IAI, Investment Bankers, KCE, such as MS, GS, and the Asset Managers, such as BLK, EV, communicates that the age of securitization and financialization, to coin fiat wealth, which was built on trust in the monetary policies of the world central banks,for investment gain is over, through, finished and done. The era of the investor is relegated to the dustbin of history.
A new age of trust in the mandates of regional fascist leaders to coin totalitarian collectivism for regional security, stability and sustainability is underway. The era of the debt serf has come of age.
The monetary policies of the Banker Regime no longer stimulate global economic growth and trade, as is seen in Nation Investment, EFA, trading strongly lower
A trade lower in the Risk Assets, that is the High Beta ETFs, TAN, SOCL, FDN, PNQI, CQQQ, IBB, IGV, IGN, PJP, RZV, RZG, PBS, CARZ, FONE, XRT, PPA, QQQ, FPX, forced World Stocks, ACWX to trade lower. Data Storage Devices, traded strongly lower.
On Tuesday, July 8, 2014, fiat wealth, that is the coinage of the Banker Regime, traded lower in value as fears of Greek Insolvency arose, as Mario Draghi pressed Greece for reforms in exchange for a Third Greek Bailout.
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