Thursday, August 15, 2013

Stocks Falling into Final Hour on Rising Rates, Mideast Unrest, Earnings Worries, Tech/Biotech Sector Weakness

Broad Equity Market Tone:
  • Advance/Decline Line: Substantially Lower
  • Sector Performance: Almost Every Sector Declining
  • Volume: Slightly Below Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 14.63 +12.19%
  • Euro/Yen Carry Return Index 135.53 -.06%
  • Emerging Markets Currency Volatility(VXY) 9.47 +1.28%
  • S&P 500 Implied Correlation 52.31 +6.36%
  • ISE Sentiment Index 85.0 -42.57%
  • Total Put/Call .94 +17.5%
  • NYSE Arms .52 -31.54% 
Credit Investor Angst:
  • North American Investment Grade CDS Index 79.19 +4.92%
  • European Financial Sector CDS Index 139.90 +4.53%
  • Western Europe Sovereign Debt CDS Index 82.50 unch.
  • Emerging Market CDS Index 308.90 +2.63%
  • 2-Year Swap Spread 17.75 unch.
  • TED Spread 21.75  unch.
  • 3-Month EUR/USD Cross-Currency Basis Swap -8.5 +.25 bp
Economic Gauges:
  • 3-Month T-Bill Yield .05% unch.
  • Yield Curve 243.0 +12 bps
  • China Import Iron Ore Spot $141.20/Metric Tonne -1.12%
  • Citi US Economic Surprise Index 40.60 +1.6 points
  • Citi Emerging Markets Economic Surprise Index -29.70 -.5 point
  • 10-Year TIPS Spread 2.18 -4 bps
Overseas Futures:
  • Nikkei Futures: Indicating -197 open in Japan
  • DAX Futures: Indicating -14 open in Germany
Portfolio: 
  • Slightly Higher: On gains in my index hedges and emerging markets shorts
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 50% Net Long

1 comment:

theyenguy said...

On Thursday, August 15, 2013, US Stocks, VTI, led World Stocks, VT, Nation Investment, EFA, Small Cap Nation Investment, IFSM, stock sectors and yield bearing stocks sectors lower, as the Interest Rate on the US Ten Year Note, ^TNX, rose to 2.75%, which turned Aggresgate Credit, AGG, lower again, and which sent Major World Currencies, DBV, of which the US Dollar, is a component, and Emerging Market Currencies, CEW, lower. The Brazilian Real, BZF, and The US Dollar, $USD, UUP, traded lower at strong support at 81.24; while the Swiss Franc, FXF, the British Pound Sterling, FXB, the Japanese Yen, FXY, and the Australian Dollar, FXE, traded higher. The Euro Yen Currency Carry trade, EUR/JPY, traded only only slightly lower, which helped maintain the Eurozone, EZU, loss on the day.


Jesus Christ acting in the Economy of God, Ephesians, pivoted the world out of Liberalism and into Auhoritarianism on Thursday, August 15, 2013, by enabling the bond vigilantes to call the Interest Rate higher on the US Ten Year Note, ^TNX, to 2.75%, which destroyed the sovereignty of the Banker Milton Friedman Free To Choose Floating Currency based regime of investment choice, with its credit and carry trade schemes. The Beast Regime of diktat and its schemes of debt servitude and austerity, is rising to rule the world, out of the collapse of democratic nation state seigniorage of credit. The world central bank’s monetary policies designed to support and stimulate global growth and trade, have exhausted. Ben Bernanke’s and The US Fed’s Quantitative Easing, Haruhiko Kuroda’s and the Bank of Japan’s Abenomics, Mervyn King’s and the Bank of England’s Forward Guidance, have not only failed, but have turned toxic, and have made “money good” investments bad.


A higher Interest Rate on the US Ten Year Note, ^TNX, has destroyed the sovereignty of democracy as is seen in World Government Treasury Debt, BWX, trading lower this week, and has destroyed the seigniorge of nation investment. Nations, EFA, trading lower included US, VTI, China Industrials, CHII, and Japan, EWJ. Small Cap Nations, IFSM, trading lower included Egypt, EGPT, US, IWM, China, ECNS, Brazil, EWZS, India, SCIN, Greece, GREK, Philippines, EPHE, Turkey, TUR, UK, EWUS, Ireland, EIRL, Mexico, EWW, Indonesia, IDXJ, Japan, JSC.


Out of the collapse of democratic nation states, new regional authoritarian, political, economic, monetary, fiscal authority, is rising to rule mankind. Leaders will meet in summits to waive national sovereignty and to announce regional framework agreements, which will pool sovereignty regionally, and which will feature nannycrat and public private partnership policies of diktat, and provide the seigniorage of diktat, where moneyness will come from the word, will and way of sovereign regional leaders. Along this line of thought comes the Zero Hedge report India bans all gold coin imports, increases capital controls


Sectors trading lower included

XIV, -5.2

TAN, -4.5

IGN, -2.6, such as CSCO, FNSR, JNPR,

PBJ, -2.5, such as KOF, DEO, JSDA, FIZZ, CCH, MNST, PEP, COKE, DPS, CCE,

FDN, -2.4

PBS, -2.4, such as MDP, LVNTA, CMLS, JRN, NXST,

RZV, -2.3, such as UNTD, ECOL, TISI, ADUS, ABG, ANGI, ELI, MCRI, ASR, CSU, BBSI, TRAX

SMH, -2.2

XRT, -2.0, such as PSUN, KIRK, ULTA, PLCE, HSNI, JNY, GES, ANF, ROST, EXPR, COST, M,

IGV, -2.0, such as PLUS, SPSC, IMPV, ADVS, ZIXI, SPLK, TYPE, CRM, SNCR, CTRX, CNQR

IBB, -2.0

IYC, -2.0

PSCI, -2.0



Yield bearing sectors trading lower included

KBWY, -2.8

ROOF, -2.4

REM, -2.0

REZ, -2.1

FNIO, -2.0

PSP, -1.5

VIG -1.5

XLU, -1.3


Financials trading lower included the following

Ireland Bank, IRE, led European Financials, EUFN, -.9

Argentina Banks, BRBR, BSBR, BMA, and GGAL, led Emerging Market Financials, EMFN, -.6

China Financials, CHIX, -.7

US Banks, BAC, and C, led Too Big To Fail Banks, RWW, -1.6

Asset Managers, seen in this Finviz Portfolio,

Regional Banks, KRE, -1.0

Investment Bankers, KCE, -1.9
Stockbrokers, IAI, -1.7