Has The Seigniorage Of Utilities, Retail, Restaurants, Education, Consumer Staples, Automobile Dealerships, Biotechnology, Communications And Tobacco Ended?

A report on Dollar Rallying Stocks for Tuesday January 3, 2011

Seigniorage is Moneyness; The ability to create money, or increase value of a stock, bond or currency; The ability of sovereign authority to create currency; The difference between the face value of money and its cost of production; The right of the lord to coin money; A stamp upon, mark, or etching in, that declares value and purchasing power or economic exchange.

Did the turn lower in DTE Energy, Ross Stores, Starbucks, Apollo Group, Kimberly Clark, America’s Car Mart, Amgen, American Tower, and Reynolds American, herald the beginning of a stock market downturn? These have been among 50 of the best performing stocks of the last quarter, that is the fourth-quarter of 2011, as seen in this Finviz Screener. An inquiring mind asks, does today’s turn lower, in these herald the beginning of a stock market downturn?

Utilities, XLU, traded lower, with NEE, SO, CNL, and DUK, leading the way lower. Has the dividend paying capability of debt ridden electric utilities, which are required to install pollution control equipment or shut down, been maximized?

Retail, XRT, traded lower, as Hobby Store, BBW, Sports Retailer, HIBB, Automobile Parts, ORLY,  Pets Retailer, PETM, and Apparel Retailers, PLCE, ARO, BKE, CHRS, GPS, BODY, ROST, ZUMZ traded lower.  Did the US customer reach his maximum spending potential this last Christmas? Is the US consumer going to go more into debt to buy goods? Is the consumer going to be buying more at Home Depot, HD, or Lowes, LOW, to fix up his home for resale?

Specialty Eateries, ^YHOh821, traded lower, with SBUX, leading the way lower. Will specialty eateries be able to pass on rising costs?

Education, ^YHOh867, traded lower, with APOL, turning lower. Can the US be relied upon to pay rising tuition costs?

Consumer Staples, XLP, traded lower with Kimberly Clark, KMB, turning lower. Will Kimberly Clark sell more high end diapers in 2012? Has the full premium price been achieved in consumer staple stocks?

Automobile Dealerships, ^YHOh849, traded lower with America’s Car Mart, CRMT, turning lower.   Has the rally in automobile dealerships run its course?

Has the rally in Biotech shares, IBB, such as Amgen shares, AMGN, and Celgene, CLG, Curis, CRIS,  run its course?

Has the rally in dividend paying Telecom shares, XTL, IYZ, such as American Tower, AMT,which turned lower today, run its course?

Has the rally in Dividend Paying shares, DVY, DTN, run its course with tobacco company, RAI, turning lower?

Has the premium for US Shares, VTI, Banks, KRE, Basic Materials, IYM, and Russell 2000 Shares, IWM, reached its zenith? Now that bonds, BND, turn lower, will credit costs rise, and eat away the premium on all of these US Shares?

Was today’s rise in risk trade assets, HYG, JNK, TAN, PSCE, WCAT,  ITB, COPX, SLX, KOL, SIVR, PAGG, SIL, simply, a day trade by investment bankers, KCE? Was today’s rise in international utilities, IPU, and small cap pure value shares, RZV, simply a rise due a rise in currencies?

As fiat money, that is world currencies, DBV, and emerging market currencies, CEW, turn lower on competitive currency devaluation, as concerns arise over banking insolvency and sovereign insolvency arise, will investors turn away from dividend investing, and the dollar rallying stocks, and  once again to gold, GLD, as a safe have investment.


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