Financial Market Report For April 2, 2012
Banco Santander, STD, -5%, and National Bank of Greece, NBG, -5%, led Spain, EWP, -4%, Greece, -4%, Italy, EWI, -3.0%, European Financials, EUFN, -2%, the World Financial Institutions. IXG, -1%, and World Stocks, VT, -0.5%, lower today, on investment awareness that Banco Santender is an insolvent bank, and that Spain is an insolvent nation.
In sympathy, Austria, EWO, -1%, Sweden, EWD, -1%, and Poland, EPOL, -1%. and Steel, SLX, -1%, traded lower, while homebuilders, ITB, +2%, Retail, XRT, +2%, Biotechnology, XBI, 1%, US Infrastructure, PKB, +1%, traded higher.
Russia, RSX, -2%, and India, -2%, led the Brics, EEB, lower, as India’s economy continued to slump and as Tata Motors, TTM, has finally started to trade lower, and as India Bank ITUB, and BBD, traded 3% lower, as growth prospects for India continue to fade, and as India’s banks continued to experience capital depletion. Between The Hedges provides the Bloomberg report Honeywell Chairman: Foreign Firms Scared of India Now. The chairman of Honeywell International Inc. warned that India’s labyrinthine bureaucracy and aggressive regulation and tax policies are spooking foreign investors and will divert investment to China and elsewhere. “Foreign companies are starting to become scared here,” said David M. Cote, 59 years old, in an interview in India’s financial capital. “They are starting to say, ‘What am I doing here?’ I comment that former economic tigers Thailand, THD, and India, INP, are now polar opposites; in the former anything goes, and in the latter, taxes and bureaucracy are the major things going.
Argentina, ARGT, traded lower, as its banks BMA, BVA, GGAL, BVR, continued to be capital depleted by the failure of Argentina’s own particular type of neo liberal finance.
Insolvent banks and insolvent nations are sources of investment combustion; the trade lower in today in Banco Santander and National Bank of Greece has literally started a bonfire of the global banks, such as Deutsche Bank, DB, which also fell strongly today. There will be no safe haven investment in any stocks; and soon even US Treasuries, ZROZ, EDV, TLT, IEF, and IEV, will start to fall lower. Soon, the only money good will be physical possession and ownership of gold bullion, gold traded in Internet Vaults, and silver bullion used for bartering.
The trade lower in the Global Banks, IXG, today, and presented in this Finviz Screener, is going to produce Financial Armageddon, that is a global credit bust and financial system collapse.
Today, May 2, 2012 is likely the final day for ongoing “momentum investing”, that is continuing “risk-on”, and no “risk-off” investing; the following traded higher today.
these 50 Momentum Stocks, such as DXPE, PII, LECO,
these Technology Momentum Stocks, PSCT, such as RHT, FEIC, SMTC, VRSK, CERN,
these Retail Momentum Stocks, XRT, such as PETM, ROST, FL, ORLY,
these Growth Momentum Stocks, IWO, such as WCC, DXPE, LECO,
these US Infrastructure Momentum Stock, PKB, such as MAS, TSCO, DY, LII,
these Value Momentum Stocks, IWN, such as CMG, SAVE, CENT, SHFL,
and Lennar, LEN, continued higher, taking Homebuilders, ITB, higher, manifesting tulip mania at the end of the era of fiat wealth.
Gold, GLD, Silver, SLV, Base Metals, DBB, Oil, USO, US Commodities, USCI, and World Commodities, DBV, traded lower today. This ongoing six month Yahoo Finance chart shows that the spread between commodities, DBC, and stocks, VT, has never been greater. Commodities traders have been deleveraging in response to debt deflation, that is currency deflation, as is seen in major world currencies, DBV, and emerging market currencies, CEW, trading lower on the failure of the seigniorage, that is failure of the moneyness, of the world central banks. An inquiring mind asks, given that commodities are trading lower, is it reasonable to believe that stocks will soon be trading lower as well?
The Stockcharts.com chart of commodities relative to stocks presented below (click on chart to enlarge) shows stocks extremely overbought and suggests that momentum investors are at great risk. I believe that an end to momentum investing is at hand.
Today, the US Dollar, $USD, UUP, rose, and the Major World Currencies, DBV, such as, ICN, FXF, FXE, BZF, FXB, SZR, FXC, and FXA, seen in this Finviz Screener, as well as the Emerging Market Currencies, CEW, traded lower.
Junk Bonds, JNK, traded up, on momentum investing; but World Government Bonds, BWX, traded down, on the falling world Major World Currencies, DBV.
The world central banks’ monetary authority has finally failed to expand global growth and global trade as reflected in the Google News reports Eurozone Crisis Hits Manufacturing and the Beween The Hedges report The Citi Eurozone Economic Surprise Index is dropping -18.6 points today to -27.9,
Alan Greenspan’s and Ben Bernanke’s credit liquidity policies of ZIRP and Mario Draghi’s lending facilities of LTRO, have done all they can to stimulate investment activity. Neo liberal finance has now turned toxic. With the strong sell of Banco Santender and National Bank of Greece, inflationism has turned to destrucionism. Monetization of the US Debt, has resulted in global debt deflation, that is currency deflation. In fact competitive currency deflation in the Indian Rupe, ICN, and the Brazilian Real, BZF, is part of the reason for the trade lower in India, INP, and Brazil, EWZ, shares, and is especially responsible for the trade lower in India Earnings, EPI, and Brazil Financials, BRAF.
The debt trade, that is the expansion in stock wealth, cuased by the securitization of debt of all type, Sovereign, BWX, Municipal, MUB, Mortgage, MBB, Junk, JNK, International Corporation, PICB, Corporate, BLV, and LQD, has expanded world stock value, VT, and its components such as Large Cap Stocks, JKE, Vice Stocks, BJK, Small Cap Pure Value Stocks, RZV, Dividend Paying Stocks, DVY, to their fullest potential; and today a strong inflection point has been reached with Banco Santander and National Bank of Greece falling in value.
Capitalism is dying on the exhaustion of the US Federal Reserve’s monetary policies of ZIRP, QE 1, QE2, Operation Twist, and Dollar FX Swaps, as well as the failure of the ECB to stabilize Banco Santender and National Bank of Greece.
The fiat money system is dying, and the diktat money system will be rising in its place.
It is likely that investment capital collapsed today; political capital will rise to rule the world, as the dynamos of growth and profit that have powered capitalism are winding down, and the dynamos of regional security, stability, and sustainability, are powering up regional global governance.
Neoliberalism featured investment bankers, such as Morgan Stanley, MS, Dexia Bank, DEXB, and Annaly Capital Management, NLY, who securitized debt and developed the fiat wealth to establish Manhattan, Battery Park, Connecticut Gold Coast, and Colorado Greenwood Village, and other areas into refuges of comfort for millions of people.
Neoauthoritarianism features political leaders, such as Angela Merkel and Herman van Rompuy, whose word, will, and way, will enforce debt servitude on all. EU leaders will soon meet in summits, waive national sovereignty, pool regional sovereignty, and announce regional framework agreements that turn the Euro zone into a pyramidal society characterized by totalitarian collectivism and statism. Bloomberg reports Merkel Is Cast as Thatcher’s Austerity Goddess. Three decades ago, U.K. Prime Minister Margaret Thatcher was confronted with a nation bordering on irrelevance, a stagnant economy and a set of entrenched beliefs about the relationship between government and the people. Thatcher faced down striking coal miners and forced through a series of free-market reforms that unshackled Britain’s economy and made it vibrant once again. To the chorus of accusations that she was killing the economy, she replied: “There is no alternative.”
Fate, described in bible verses 2 Corinthians 5:17-18, not any human action, is working through creative destruction, Revelation 6:1-2, to shred the Milton Friedman Free To Choose script of capitalism; and is trumpeting the 1972 to 1976 Clarion Call of the 300 Club of Rome for regionalism, as embodied in Mankind At The Turning Point. Destiny is working through regionalization to create the ten world trading and economic blocks called for by the Club of Rome.
The prophet Daniel relates that there is waiting in the wings of Europe’s stage, the most capable of leaders. Soon, this one of seeming little authority, that is the Little Horn, Daniel 7:8, and Daniel 8:9, will step into the limelight, and lead Euroland to be a type of revived Roman Empire. Bible prophecy of Revelation 13:5-10, presents him as the Sovereign, and Revelation 13:11-18, presents his partner, the Seignior, meaning top dog banker who takes a cut.
I experience povety, eat in soup kitchens, visit the food bank, and reside in an inner city neighborhood, where I walk or ride my bicycle about; people continually pass by in automobiles and through liquids on me and flip me off and yell obscenities at me; others say mean and crazy things to me, like “beacon head”, because of my bald head; yet I persevere, knowing there is a better day coming. I asked the cop on the beat, why do these people carry on the way they do; and he said, “They can’t help themselves, they are by nature, busy bodies in others people’s business”; I say they are simply poneros.
In as much as the end time events, that is “the things that must shortly come to pass”, Revelation 1:1, are clearly unfolding, I encourage that one consider praying for the gift of a good conscience from God, so as to genuinely discern right from wrong, and consider embracing a biblically coherent plan for virtuous living, as a means of developing resilient strength, a good nature, a sound understanding of godly identity, and a healthy understanding of the meaning of life, as presented in 2 Peter 1:1-21.
Soon, there will be no place to live free, except in the conscience of one’s mind. A good conscience, a sound faith, abiding virtue, persistent godliness, ongoing brotherly kindness, and genuine love for all comes at a cost. ”Soon we must all face the choice between what is right and what is easy.” – Albus Dumbledore.
In today’s news
Open Europe reports Sarkozy Intensifies Appeal To Far-right Amidst Internal Criticism. At the Front National’s May Day rally yesterday, Marine Le Pen confirmed that she would spoil her ballot in the second round of the French elections on Sunday. She gave no voting instructions to her supporters. The far-right leader denounced the two candidates, stating that “on May 6 it is not a president who is to be elected, but a simple employee of the ECB…charged with applying the Commission’s decisions without questioning them”.
Le Pen’s announcement came despite concerted UMP efforts to court the FN vote. French President Nicolas Sarkozy appeared on radio station RMC yesterday, during which he claimed that there were too many immigrants in France. Sarkozy used the UMP’s May Day rally as an opportunity to stress his commitment to France’s “values, identity and the frontiers than protect us”. Meanwhile, socialist candidate Francois Hollande has called for Sarkozy’s Defence Minister Gerard Longuet to resign, after the latter penned an article in far-right weekly Minute, claiming that the UMP could enter into a “dialogue” with Marine Le Pen. UMP secretary-general Jean-Francois Cope told Le Figaro this morning that “there has never been and there never will be a [UMP] alliance with the far-right”, and maintained that the party united “centrists, liberals and Gaullists”.
Hollande and Sarkozy will appear in the only televised debate before Sunday’s elections tonight, widely perceived as Sarkozy’s last chance to convince voters. The latest BVA poll places Hollande on 53.5%, ahead of Sarkozy on 46.5% this morning. The poll indicates that just 11% of voters would reconsider their decision based on tonight’s debate. Times Le Monde BBC Independent IHT Le Figaro Corriere della Sera Irish Independent Telegraph Telegraph: Brogan Telegraph EUobserver Guardian Le Monde 2 Le Monde 3 Comment is Free: Guardian Le Monde 4 Liberation Liberation 2 FT: Kay Le Monde 5 Le Monde 6 Les Echos Les Echos 2 Les Echos 3 Le Monde 7
The Short URL for today’s article … The Trade Lower In Spain’s Banco Santander Has Ignited The Bonfire Of Global Financial Institutions … is http://tinyurl.com/72bqolb