Wednesday, March 19, 2014

Bear Radar

Style Underperformer:
  • Small-Cap Growth -.51%
Sector Underperformers:
  • 1) Gold & Silver -1.35% 2) I-Banks -.90% 3) REITs -.81%
Stocks Falling on Unusual Volume:
Stocks With Unusual Put Option Activity:
  • 1) CWH 2) NAV 3) ORCL 4) FSLR 5) YRCW
Stocks With Most Negative News Mentions:
  • 1) GM 2) FDX 3) MGM 4) MBI 5) WFM

1 comment:

theyenguy said...

Both Equity Investments and Credit Investments turned lower on March 19, 2014, after the US Fed FOMC Meeting, as the bond vigilantes called the Interest Rate on the US Ten Year Note, ^TNX, higher to 2.77%, on the exhaustion of the world central bank’s monetary authority, as the US Fed and other central banks have crossed the rubicon of sound monetary policy. Global ZIRP, and its excessive credit, working through the speculative leveraged investment community, has fully matured money manager capitalism, and finally made “money good” investments bad.

Volatility, ^VIX, rose, taking TVIX, VIXY, and VIXM higher, as cheap money has finally made all fiat investments bad; the bull stock market has pivoted to become a bear stock market as a number of Proshares 200% Inverse ETFs, such as BIS and EPV, as well as Direxion 300% Inverse ETFs, such as YANG, TZA, SOXS, SPXS, JPNS, EDZ, KORZ, DPK, MIDZ, and EURZ, traded higher.

Equity Investments, US Real Estate, IYR, Global Real Estate, DRW, and Casinos and Resorts, BJK, led World Stocks, VT, Nation Investment, EFA, such as Greece, GREK, and Ireland, EIRL, Global Financials, IXG, such as the European Financials, EUFN, and Dividends Excluding Financials, DTN, traded lower, as investors deleveraged out of EUR/JPY currency carry trade investments, such as AIXG, LUX, ALU, CRH, and NVO, and derisked out of debt trades such as ALU, OAK, FSRV, PUK, NM, and HEES.

Credit Investments, Junk Bonds, JNK, International Treasury Bonds, BWX, International Corporate Bonds, PICB, and US Government Bonds, GOVT, such as US Treasuries, TLT, and Mortgage Backed Bonds, MBB, led Aggregate Credit, AGG, lower, on the higher Benchmark Interest Rate, ^TNX.

Major World Currencies, DBV and Emerging Market Currencies, CEW, traded lower; the US Dollar, $USD, traded higher; with the result that Gold, $GOLD, traded lower. I recommend that now with a trade lower in the price of Gold, $GOLD, from $1380, one start to dollar cost average, an investment in the physical possession of Gold Bullion.

The investment principle is “In a bull market, like the one currently in Gold, GLD, one buys in dips, but in a bear market, one sells into pips.

Of note, gold mining stocks, GDX, are trading strongly lower in value; and with a PE of 34, are greatly overvalued.

Gold is going to experience great price inflation, as an investment demand for gold will commence, as competitive currency devaluation creates a see saw destruction of equity investments and credit investments. Gold is the defacto safe haven invesment in times of economic uncertainty and destabilization. Of note, gold mining stocks, GDX, are trading strongly lower in value; and with a PE of 34, are greatly overvalued and overbought.

Global economic crisis is coming soon from the failure of money and credit on investment derisking and deleveraging stemming the failure of the world central banks’ monetary policies to stimulate global growth and trade as well out of geopolitical risks throughout the world.

Banks everywhere will be integrated into regional governments, with the Eurozone and the US being leading examples of economic fascism. Savings and Loans, Regional Banks, and the Too Big To Fail Banks, such as BOFI, SVB, HBAN, BAC, will be integrated into the banks and be known as the Government Banks, or Gov Banks.