Financial Market Report for March 20, 2012
Bonds, BND, traded unchanged, Copper Miners, COPX, and China Shares, YAO, CHXX, CHIX, CHIM, CHII, HAO, CAF traded lower on fears of diminished world growth. Now the growth trade is over as Growth Stocks, RZG, and the Value Stocks, RZV, and the Transportation Stocks, IYT, and Industrial Stocks, IYJ, traded lower. The debt trade, particularly the Sovereign Debt trade, BWX, and EMB, and to a lesser extend, the Junk Bond trade, JNK, traded lower. Thus the seigniorage of world central banks’ monetary policies has failed. Neither sovereign nation authority, nor growth potential, gives moneyness to bonds or stocks. Currency deflation is underway as the US Dollar, USD, UUP, is trading up on the month; and currencies, DBV, and CEW, traded lower, on the day. The currency demand curve, RZV:RZG, shows that investors are no longer risking investing value shares as currencies are loosing value globally.
Capitalism is dying as both credit and money have failed as the dynamos of growth and profit are turning off. Regional global governance is powering up on the need for regional security, stability, and sustainability.
European Financials, EUFN, led Euorpean Shares, VGK, lower; while JP Morgan, JPM, Bank of America, BAC, and Citigroup, C, rose; these latter two are high beta stocks so it is not surprising to see them rise. The Financial Sector, XLF, traded up 0.5%, which made for a good entry point on the two hundred percent bear market financial SKF.
The S&P, SPY, traded lower as Word Financials, IXG, and Materials, MXI, traded lower. It is the BRICS, EEB, and the emerging Markets EEM, EWX, that are leading the way down.
Nations turning lower today included, RSX, EWA, CAF, EWI, EWD, ARGT.
Growth Stocks trading lower included, MTW, TEX, JOY.
Energy Service, IEZ, and XES, traded lower.
Leveraged Buyouts, PSP traded lower.
Small Cap Value, RZV, trading lower included SNX, MAIN.
Biotechnology, XBI, traded lower included GILD, AMGN.
Homebuilders, ITB, trading lower included, DHI.
Semiconductors, XSD, trading lower included TSM.
Internet Retailers trading lower included PCLN, GOOG,
Agriculture, MOO, PAGG, shares trading lower included DE, AGCO.
Design Build Construction, PKB, traded lower included CAT, EXP,
Large Cap stocks, JKE, trading lower included UTX, CMI,
Mining Shares, MXI, trading lower included , RIO, ACH.
Energy Shares, XLE, trading lower included SLB, CVX,
Small Cap Energy, PSCE, traded lower.
Automobile Shares, VROM, CARZ, trading lower included GM, TTM,
Credit Companies traded lower included V, MA,
Health Care Companies, IHF, trading lower included UNH, WCG,
Electrical Equipment Manufacturers, traded lower included ETN. BGC
Internet Retailers traded lower included PCLN, GOOG.
Agricultural Equipment Shares, DE, AGCO, traded lower,
Aerospace companies, traded lower included HON,
Paper Manufactures, WOOD, traded lower included IP,
Chemical Manufacturers trading flower included, DD,
Refiner, IMO, traded lower.
Small Cap Technology, PSCT, trading lower included, FFIV, JBL,
Steel. SLX, trading lower included NUE,
Real Estate Shares, IYR, trade lower, including FNIO.
Small Cap Industrial , PSCI, traded lower included DXPE, SNA, ROLL,
Vice StocKs, BJK, trading lower included SHFL, PM,
Volatility, VIXY, and VIXM, traded lower
Bear Bond Market ETF, TBT, traded unchanged, and Bear Stock Market ETF, SKF, traded unchanged, and EEV rose.
The recent rally was in Stocks, VT, only, as Commodities, DBC, traded lower: the rally in stocks was not confirmed in commodities, which traded lower again today, on lower Base Metals, DBB, Copper, JJT, Timber, CUT, Agriculture, JJA, and Oil, USO,
Competitive currency devaluation, is underway, with the Brazilian Real, BZF, the Brazilian Real, BZF, the Australian Dollar, FXA, and now the Mexico Peso, FXM, trading lower.
Debt deflation, is underway, in Bonds, AGG, Stocks, ACWI, Commodities, DBC, Major Currencies, DBV, and Emerging Market Currencies, CEW. Destruction of fiat wealth has commenced. Wealth can only be preserved by dollar cost averaging into gold bullion as the world has entered in Great Depression II.
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