Financial market report for Tuesday February 5, 2013
The Philippines, EPHE, rose parabolically higher, in a three white flag candlestick pattern, confirming an end to Liberalism’s Age of Nation Investing, EFA and IFSM. Global Trade dependent South Korea, EWY, its Banks, KB, WF, SHG, and its Steel, SLX, Posco, PKX, as well as its Consumer Electronics, LPX, based economy is the Nation Investing, EFA, loss leader. Peru, EPU, its Copper Mining, COPX, Southern Peru Copper Corp, SCCO, and its Bank, BAP, is the Small Cap Nation Investing, IFSM, loss leader. The credit liquidity policies of the world central banks has finally caused investors to derisk out of the Consumer Electronics Nation and Steel Producing Naton, South Korea, and out of the Copper Mining Nation, Peru. The Emerging Market Alpha Leaders, FEMS, bounced higher in short sell covering.
The S&P 500, SPY, bounced 1.0%, largely on Healthcare Provider, IHF, Transportation Shares, XTN, High Beta, SPHB, Banking, RWW, Retail, XRT, Networking, IGN, Aerospace, PPA, Internet Retailers, FDN, US Infrastructure, PKB, Technology, MTK, and on Global Producers, FXR. This after Monday’s sell off that gave the S&P 500 its biggest percentage decline since mid-November. The benchmark of large cap stocks now stands 3% up this month, and 6% up since the start of the year.
A bounce from strong resistance in the Apparel Retailers, MW, PLCE, RUE, ANN, GPS, ZUMZ, ARO, caused Retail, XRT, to 1.8% rise, presenting a great opportunity to go short the Retail ETF, as well as short Direxion’s 300% Retail ETF, RETL. And a bounce higher in Oil, USO, took Natural Gas, UNG, higher, making it also a good short selling opportunity, not only in this ETF, and also in Direxion’s 300% Natural Gas ETF, GASL, as in a bear market one sells into rallies, just as in a bull market one buys into dip.
Short sell covering caused a number of Large Cap Growth, JKE, stocks to rise strongly; these included General Electric, GE, Eaton, ETN, Texas Instruments, TXN, Estee Lauder, EL, International Paper, IP, Automatic Data Processing, ADP, US Steel, X, Bank of America, BAC, Citigroup, C, Morgan Stanley, MS, Goldman Sachs, GS, JPMorgan, JPM, First Solar, FSLR, Johnson & Johnson, JNJ, Halliburton, HAL, Texas Instruments, TNX, Proctor and Gamble, PG, Eli Lilly, LLY, Allergan, AGN, Pfizer, PFE, Newell Rubbermaid, NWL, KBR Inc, KBR, Ingersoll Rand, IR, Motorola Solutions, MSI, Cisco, CSCO, JDS Uniphase, JDSU, Ford, F, General Motors, GM, Qualcom, QCOM, Micron, MU, Amazon, AMZN, eBay, EBAY, Comcast, CMCSA, Direct TV, DTV, Mattel, MAT, MasTEC, MTZ, Beacon Roofing Supply, BECN, USG Corp, USG, Tex Corp, TEX, United Rentals, URI, Primoris, PRIM, American Rail Car, ARII, Eagle Materials, EXP, Weyerhaeuser, WY, Analog Devices, ADI, Autodesk, ADSK, Mastercard, MA, Linear Technology, LLTC, Biogen, BIIB, Worthington Industries, WOR, Fomento, FMX, Trimble Navigation, TRMB, Blackrock, BLK, Goodyear Tire, GT, Gilead Sciences, GILD, Illinois Tool Works, ITW, as well as Mid Cap Stocks, such as Airgas, ARG, and AGCO Corp, AGCO
The Yen, FXY, continued lower, which caused Hedged Japan, DXJ, and Bank, MFG, to continue to rally. How much further the Yen, FXY, will continue to go lower is anybody’s guess. The chart of Euro Yen Carry Trade, $XEU:$XJY, that is EUR/JPY, rose rose parabolically higher, as did the 200% short Yen ETF, YCS.
Andrew Hoffman of Miles Franklin relates we have “QE to Infinity”. The Federal Reserve’s ZIRP, and ongoing and even increasing purchases of Treasury, GOVT, and Mortgage Backed Bonds, MBB, has finally turned “money good” investments, such as Nation Investing, EFA, and IFSM, and Global Producers, FXR, bad.
The monetary policies and programs of Liberalism’s pied pipers, Alan Greenspan, Ben Bernanke, Mario Draghi, and Shinzo Abe, while have creating a financialization credit boom, have resulted in rising U6 Unemployment, Negative Real GDP Growth, over 9.0% Real US Inflation (per Shadowstats.com) and prospective Sovereign and other Defaults, as well as leading the world away from genuine wealth.
Please consider that gold re-monetization is about to commence on global debt saturation. The flagship of gold as sovereign wealth is about to rise and set sail, as the Global Central Bank Balance Sheet lowers its mast as Business Insider writes Mario Draghi Can’t Stop The Bubble From Bursting.
Wealth can only be preserved by investing in and taking possession of physical gold, GLD, in bullion form or in Internet trading vault form such as Bullion Vault. The chart of Silver, SLV, shows a close at strong resistance of 31. When and if silver ever becomes an invesment metal is anybody’s guess.
A soon unwinding of the seven month long Euro Yen Carry Trade, EUR/JPY, will cause investors derisk out of stocks, VT, on falling Major World Currencies, DBV, and Emerging Market Currencies, CEW.
As competitive currency devaluation starts, on the exhaustion of the world central banks’ monetary authority, an investment demand for gold will arise. Whose currency, will fall the first and the fastest is anybody’s guess. It is largely up to the FX currency traders. Jesus Christ is at the helm of the economy of God, Ephesians, 1:10; and he knows those things which must shortly come to pass, Revelation 1:1, meaning that events are unfolding, and falling in line, just like one toppling domino, causes a whole line of them to fall over.
In news of the day, AP reports Ally returns to profit in 4Q as auto loans grow. And in overnight trading on Wednesday Reuters reports Nikkei jumps 3.8% higher to 33-month high on BOJ governor’s early departure. What a credit mad, and currency mad, world we live in.
Mike Mish Shedlock writes of currency madness and credit madness in article Currency wars heat up, where he relates one metric of credit madness, the US credit market stand at $55 trillion vs. GDP of not quite $16 trillion.