Stocks Appear Topped Out As Currencies Rise And Dollar And Treasuries Fall Lower As Fears Of US Government Shutdown Grows

Financial Market Report for April 6, 2011

1) … Stock charts suggest that the stock market has topped out as rising world currencies and fears of a US Government shutdown.
Transportation, IYT,

Dow Industrial, DIA


Emerging Market Small Cap, EWX

Gold Mining Stocks, GDX. The chart of gold mining shares relative to the 30 Year US Government Bond, $HUI:$USB,  communicates that risk capital has expanded all it can to produce gold based upon the current level of US Sovereign Debt … $HUI;$USB.

Russell 2000 Growth, IWO,

Morgan Stanley Cyclical Index, $CYC,

Junk bonds, JNK,

World Shares, ACWI,

Biotechnology, XBI,

Nasdaq Biotechnology, IBB

Consumer Discretionary, VCR,

Retail, XRT,

Small Cap Pure Value, RZV,

Small Cap Financial, RWJ,

30 Year US Government Bond, EDV,  

The chart of World Shares Relative to World Government Bonds communicates that seigniorage of the neoliberal Milton Friedman Free To Choose global economic, political and investment ecosystem failed February 22, 2010.

Financials moved higher as world currencies rose today which sent the US Dollar plummeting.   
European Financial, +1.9%, Banks, KBE, +1.6, Financials, XLF, +1.0, Emerging Market Financials, Financials, +XLF, 1.0

Brazilian Real, BNZ, 1.4
Australian Dollar, FXA, 1.1
South African Rand, SZR, 0.9
Euro, FXE, 0.8
Swiss Franc, FXF, 0.7
Commodity Currencies, CCX, 0.5
Emerging Market Currencies, CEW, 0.5
Swiss Franc, FXS,0.4
Canadian Dollar, FXC, 0.4
Indian Rupe, ICN. 04.
British Pound, FXB. 0.2
Mexico Peso, FXM, 0.1

Chart of Commodity Currencies, CCX, 0.5

Base Metal Commodities, DBB,

Brazilian Real, BZF, -0.9
Japanese Yen, FXY, -0.7

Gold, GLD, 0.2Silver, SLV, 0.7

Brazilian Small Caps, BRF, -2.1%

US Dollar. $USD, -0.5% to close at 75.54

Perhaps one might enjoy my chart site … The Seigniorage Of Quantitave Easing Has Failed …. A Bear Market Is Underway

2) … Today’s News Courtesy of Gary Between The Hedges and Bloomberg

Euro Rallies Before ECB Meeting; Dollar Declines to Record Against Aussie. The euro advanced to its highest level against the dollar in more than 14 months on speculation the European Central Bank will increase borrowing costs further after raising its target lending rate tomorrow. The greenback dropped to a record against the Australian dollar and the lowest level versus the Canadian currency in more than three years on the view the Federal Reserve will trail other central banks in boosting interest rates. The yen tumbled against all of its major counterparts on bets the Bank of Japan will expand economic stimulus as the nation recovers from its worst earthquake on record. “It’s a combination of the market expecting the ECB to hike tomorrow and the generally positive environment for risky assets,” said Aroop Chatterjee, a currency strategist at Barclays Plc in New York.

Portugal Finance Minister Calls for European Assistance, Negocios Reports. Portugal needs to ask the European Union for financial assistance, Portuguese newspaper Jornal de Negocios reported on its website, citing Finance Minister Fernando Teixeira dos Santos. “It’s necessary to resort to financing mechanisms available in the European framework in the appropriate terms for the current political situation,” Teixeira dos Santos said in a response to questions from the newspaper, Negocios reported today on its website. The comments mark the first time that the government has said it would need to seek aid.

Cuomo Repeats Threat to Dismiss 10,000 N.Y. State Workers. Governor Andrew Cuomo, who produced New York’s first on-time budget in five years last week, is standing by his threat to fire almost 10,000 workers unless they agree to provide the state with $450 million of savings. Labor contracts that increased state workers’ pay almost 14 percent over four years expired March 31, 10 days after formal negotiations with unions began. Cuomo has said he spoke with labor leaders about his goals before talks started. “Negotiations are ongoing and obviously if we don’t reach an agreement, we would need to proceed with layoffs,” said Joshua Vlasto, a spokesman for Cuomo, in a telephone interview today. Cuomo, a 53-year-old Democrat, reached agreement with top lawmakers March 27 to close a $10 billion gap in the $132.5 billion budget

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