Thursday, January 19, 2012

Stocks Rising into Final Hour on Falling Eurozone Debt Angst, Tech/Financial Sector Optimism, Lower Energy Prices, Better US Economic Data

Broad Market Tone:

  • Advance/Decline Line: Higher
  • Sector Performance: Most Rising
  • Volume: Slightly Below Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • VIX 19.98 -4.36%
  • ISE Sentiment Index 96.0 -26.72%
  • Total Put/Call .73 -13.10%
  • NYSE Arms .99 +59.05%
Credit Investor Angst:
  • North American Investment Grade CDS Index 107.57 -4.78%
  • European Financial Sector CDS Index 204.78 -5.43%
  • Western Europe Sovereign Debt CDS Index 353.65 -2.54%
  • Emerging Market CDS Index 287.40 -3.62%
  • 2-Year Swap Spread 35.0 -1 bp
  • TED Spread 53.0 -1 bp
  • 3-Month EUR/USD Cross-Currency Basis Swap -77.0 unch.
Economic Gauges:
  • 3-Month T-Bill Yield .04% +2 bps
  • Yield Curve 175.0 +9 bps
  • China Import Iron Ore Spot $139.70/Metric Tonne -.14%
  • Citi US Economic Surprise Index 71.60 +1.7 points
  • 10-Year TIPS Spread 2.11 +5 bps
Overseas Futures:
  • Nikkei Futures: Indicating +75 open in Japan
  • DAX Futures: Indicating -2 open in Germany
  • Higher: On gains in my Tech, Retail and Medical sector longs
  • Disclosed Trades: Covered all of my (IWM), (QQQ) hedges and some of my (EEM) short, then added some back
  • Market Exposure: 75% Net Long

1 comment:

theyenguy said...

The most toxic and overvalued investments rallied the strongest today, putting an end to the Free To Choose Regime of Neoliberalism that has governed the world ever since Milton Friedman encouraged abandonment of the gold standard in 1971.

The most toxic of debt, Michigan Municipal Bonds, MIW, rose as did Junk Bonds, JNK, and Leveraged Buyouts, PSP.

Its was a carry trade day with the Yen, FXY, falling and the world currencies, DBV, and emerging market currencies, CEW, rising, making the US Dollar, $USD, UUP trade lower. The chart of the USD/JPY shows trading around 76.70 after hours.

Neoliberalism featured neo liberal finance where bankers profited from credit liberality. You provide the Tages-Anzeiger report

I comment that fiat money is dead, it died in July of 2011 when investors feared that a debt union had formed in the EU and fled world currencies, DBV, emerging market currencies, CEW, causing debt deflation in world government bonds, BWX, in September 2011, and emering market bonds, EMB, in January 2012. The debt of the insolvent sovereigns, the PIGS, will not be restructured in the traditional sense, nor can an fresh capital be raised. The death of currencies mean capitalism is dead. Investment capital is giving way to political capital, particularly economic diktat and political diktat, where diktat will now serve as a currency. EU leaders, that is financial cardinals, are going to waive national sovereignty, and create a One Euro Government where Neoliberalism’s sovereign debt and banking debt will be applied to every man, woman and child in the Eurozone. The EU is going to be come a totalitarian collective where residents live in debt servitude.

Much more on the link provided