Commodities, Stocks And Currencies Trade Sharply Lower On The Inability Of The World Central Banks To Continue To Stimulate Global Growth And Trade

On Monday, April 15, 2013, Risk ONN, ONN, to Risk Off, OFF, as the chart of Volatility, ^VIX, shows a strong rise taking Volatility, TVIX, and Volatility, VIXY, higher, as World Stocks, VT, Nation Investment, EFA, such as EZA, RSX, YAO, EWZ, EWW, Small Cap Nation Investment, IFSM, such as ERUS, EWZS, ERIL, VNM, KROO, ENZL, IDXJ, EPHE, EPOL, EFNL, ARGT, EPU, IWM, and GREK, and Global Industrial Producers, FXR, traded sharply lower on the exhaustion of the world central bank’s monetary authority to stimulate global growth and trade, as well as corporate profits, as Daily Ticker reports Gold and stocks in sharp selloff amid global growth worries.  The chart of the S&P 500, $SPX, SPY, showed a 2.3% trade lower to close at 1,552.  Regional Banks, KRE, seen in this Finviz Screener traded 3.1%, lower, taking the credit sensitive Russell 2000, IWM, 3.8% lower.

Loss leaders of the day included the metal and industrial miners

Silver Miners, SIL, 13.2, SILJ, 11.5

Gold Miners, CDX, 9.8, GDXJ, 13.5

Copper Miners, COPX 8.9

Rare Earth Miners, REMX 7.5

Uranium Miners, URA 6.7

Industrial Miners, PICK 5.7

Coal Miners, COAL, 4.5

Pure Small Cap Value Stocks RZV, 4.6, led by Automobile Dealership LAD 5.6, and Capital Senior Living, CSU, 5.2%. Pure Small Cap Growth Stocks, RZG, 3.8, led by Business Material Wholesalers, 6.6.  The stronger fall in the former over the latter is due to the Small Cap Silver Miners, SILJ, and the Small Cap Gold Miners, GDXJ, participation in the Small Cap Pure Value Shocks, RZV.

Yield bearing investment trading lower included

Dividend Excluding Financials, DTN, 2.2

Dividend Growth, VIG, 2.,2

Pharmaceutical, XPH, 2.2

Telecom, IST, 1.4

Utilities, XLU 1.4

Economic Production Sectors, seen in this Finviz Screener, traded sharply lower included:

US Infrastructure, PKB, 5.0

Small Cap Industrial Producers, PSCI, 4.2

Paper Producers, WOOD, 4.1

Global Industrial Producers, FXR, 3.5

Transportation XTN. 3.4

Industrials, XLI,  3.0

Networking, IGN, 3.0

Dynamic Media, PBS, 2.8

Internet Retail, FDN, 2.7

Automobile Manufacturers, CARZ, 2.3

Aerospace, PPA, 2.3

Semiconductors, XSD,  2.3

Risk Assets, seen in this Finviz Screener, traded sharply lower included:

Spin Offs, CSD, 4.3

Clean Energy, PBD, 3.3

Leverage, Buyouts, PSP, 2.8

IPOs, FPX, 3.3

Gaming, Casinos, and Resorts, BJK, 3.0

Biotechnology, IBI, 2.7

Consumer Sectors, seen in this Finviz Screener, trading sharply lower included:

Home Building, ITB, 5.4

Retail, XRT 3.1

Consumer Discretionary, IYC 2.1

Real Estate Sectors, seen in this Finviz Screener, trading sharply lower included ROOF, which traded 2.8% lower, and REM, which traded 2.6% lower. 

Global Producers, seen in this Finviz Screener, traded 3.1% lower.

Global Industrial Producers, FXR, such as IR, seen in this Finviz Screener, traded 3.7% lower 

Industrial Electrical Equipment Manufacturers, seen in this Finviz Screener, traded 4.3% lower.

Diversified Equipment Manufacturers, XLI, seen in this Finviz Screener, traded 3.7% lower.

Business Service Providers, seen in this Finviz Screener, traded 3.6% lower. 

Metal manufacturers, XME, seen in this Finviz Screener, traded 4.0% lower.

Dig and Dirt Moving Stocks, MTW, IR, CR, CAT, KUB, seen in this Finviz Screener, traded 4.2% lower.

Biotechnology Stocks, IBB, seen in this Finviz Screener, traded 3.1% lower.

Paper Producers, WOOD, traded, seen in this Finviz Screener, 5.0% lower,

Real Estate, IYR, seen in this Finviz Screener, traded 3.0% lower.

US Infrastructure, PKB, seen in this Finviz Screener, 4.9% lower.

Retailers, XRT, seen in this Finviz Screener traded 3.2% lower.

Credit Service Providers, seen in this Finviz Screener, traded 3.4% lower.

Energy Stocks, seen in this Finviz Screener, traded 5.1% lower and included

Energy Service, OIH, 5.2

Energy Service, IEZ, 5.0

Energy, XOP, 6.0

Small Cap Energy, PSCE, 5.8

Energy, XLE, 4.1

Commodities, DBC, seen in this Finviz Screener, traded lower as follows

Silver, SLV, -12.6

Gold, GLD, -8.9

Lumber, CUT, -4.3

Oil, USO -3.2

North Sea Oil, BNO -3.1

Commodities, DBC, -3.0

Agricultural Commodities, JJA, -2.1

The chart of Gold, $GOLD, shows close at $1,350 per ounce, as Reuters reports Gold has its biggest 2-day drop in 30 years.  And as Bespoke Invesment Group reports Gold Trades at Most Oversold Levels on Record  AP reports Oil falls to around $89 as China growth slows.

Major World Currencies, DBV, traded 2.1%, lower, and Emerging Market Currencies, CEW, 0.6%, lower. The chart of the US Dollar, $USD, UUP, shows a 0.3% trade higher to close at 82.50. Action Forex reports that the EUR/JPY closed lower from its recent burst higher at 128.30. 

Bonds, BND, rose slightly higher to close at strong resistance; but Toxic Credit, FAGIX, Junk Bonds, JNK, and Senior Bank Loans, BKLN, traded lower. 

A number of stock sectors entered a bear market on Thursday March 21, 2013, as Reuters reported ‘Cyprus and European data rattle the Euro’, and as the NYT reported ‘Mood sours in Cyprus as E.C.B. gives bailout ultimatum’.

Today, Monday, April 15, 2013, the world passed through an epic investment pivot point on the exhaustion of the world central banks’ monetary authority inability to stimulate global growth and trade, as World Stocks, VT, Nation Investment, EFA, Small Cap Nation Investment, IFSM, traded lower, transitioning from bull to bear market. The markets have turned from Risk On, ONN, to Risk Off, OFF.

A full expansion of both toxic credit investing, JNK, and carry trade investing, ICI, built upon a falling Japanese Yen, FXY, have been achieved, as is witnessed by Leveraged Buyouts, PSP, and IPOs, FPX, and Global Industrial Producers, FXR, trading lower in value.

The most toxic of debt, such as Fidelity’s Distressed Investments, FAGIX, specifically assets taken in by the US Federal Reserve under QE1, Junk Bonds, JNK, and Emerging Market Bonds, EMB, have been the credit basis of Liberalism’s Grand Finale Stock Rally that that began nine months ago with a Euro Yen, EUR/JPY, currency carry rally; these have all turned lower; Action Forex report that the Euro Yen trade closed lower from its recent burst higher at 128.30.

Major World Currencies, DBV, and Emerging Market Currencies, CEW, traded lower, commencing competitive currency devaluation as the US Dollar, $USD, UUP, and the Japanese Yen, FXY, traded higher.

The seigniorage, that is the moneyness of the Milton Friedman Free To Choose Floating Currency Regime, was based upon national sovereignty of democratic states; it failed Monday April 15, 2013, on falling currencies, giving confidence to the concept that regionalism is rising to replace capitalism and European socialism and Greek Socialism, with the result being that Large Cap Dividend Stocks, Excluding Financials, DTN, such as S&P Telecom, IST, Utilities, XLU, and Pharmaceuticals, XPH, are no longer underwriting Dividend Growth, VIG.

Under Liberalism, moneyness came from Asset Managers, such as BLK, WDR, EV, STT, WETF, and AMG, and the Too Big To Fail Banks, RWW, such as BAC, C, BK, KEY, and JPM, underwritten by Liberalism finance schemes, such as Free To Trade Agreements and Financial deregulation.

The global debt bubble served to leverage up the most speculative of stocks, such as the vice stocks held in the Fidelity Mutual Fund VICEX, the Gaming ETF, BJK, as well as Small Cap Value Shares, RZV, with the result being that the dynamos of global growth and corporate profitability are winding down, and the dynamos of regional security, stability and sustainability are winding up regionalism, and is terminating the concept of investment choice. Investors should start thinking of an investment strategy that is based upon the concept that regional leaders, such as the EU Finance Ministers, and regional bodies such as the ECB, are going to introduce regional governance with new taxes, bank deposit bailins, and capital controls.

With the strong sell of the world major currencies, DBV, and the Emerging Market Currencies, CEW, on Monday, April 15, 2013, the concepts of both credit and money must be reexamined and redefined.

The dynamos of global growth and corporate profit are winding down capitalism, European socialism and Greek socialism, terminating credit.

The end of credit has commenced, on Monday April 15, as seen in most all of the credit instruments seen in this Finviz Screener, EMLP, AUSE, BRAF, DRW, KBWY, DWX, JNK, SEA, IST, EMB, PGF, BKLN, PICB, VIG, XLU, ROOF, IYR, XPH, CWB, VNQ, DTN, MUB, DBU, FNIO, PHO, DWM, DOO, DLS, REM, EDIV, DGS, BWX, IHY, EFA, REZ, KBWD, EUFN, PSP, IFGL, TAO, IFSM, AMJ, DSUM, UJB, PCEF, FLOT, SHY, BND, MBB, GOVT, trading lower in value.

The dynamos of regional security, stability, and sustainability are winding up regionalism, establishing a new trust, the trust in mandates of technocratic government.

On Monday, April 15, 2013, the world passed through Peak Money, VT, Peak Currencies, DBV, and CEW, and Peak Credit, JNK, communicating and end to Liberalism’s Money.

Austrian economist Ludwig von Mises provides insight into the end of  crack up boom Liberalism’s money The boom can last only as long as the credit expansion progresses at an ever-accelerated pace. The boom comes to an end as soon as additional quantities of fiduciary media are no longer thrown upon the loan market. But it could not last forever even if inflation and credit expansion were to go on endlessly. It would then encounter the barriers which prevent the boundless expansion of circulation credit. It would lead to the crack-up boom and the breakdown of the whole monetary system.

Diktat money was born out of the Cyprus Bank Deposit Bailin and issued in Authoritarianism; it is defined as the compliance required, as well as the trust that is engendered, the debt servitude that is enforced, and the austerity that is experienced, such as heavy losses on large bank deposits, levying additional taxes, privatizations, and sale of a country’s central bank’s gold reserves, when sovereign regional sovereign leaders such as Olli Rehn, and sovereign regional sovereign bodies such as the EU Finance Ministers or the ECB, invoke mandates for regional security stability and sustainability.

Under Authoritarianism, ever increasing moneyness will come from the mandates of regional leaders, such as the EU Finance Ministers and regional bodies such as the ECB, underwritten by Authoritarianism schemes such as regional framework agreements, which will waive national sovereignty and pool sovereignty regionally. The Nordic Latin Divide, that is the Eurozone North South Divide, will be bridged by such agreements, establishing a One Euro Government. While Germans, cannot be Greeks, they will be one, unified as residents of a region of “true European Government” as perceived by Angela Merkel.

Of note, its the end of whatever economic and political system that Slovenia had, as Bloomberg reports Slovenia asset sale plan fails to ease debt squeeze concern. Slovenia’s plan to sell shares in state owned companies failed to ease investor concern that the country will become the next euro-area nation to need a bailout. Slovenia’s default risk rose to a six-month high and bond yields hovered near records as the country prepares to tap markets this week. Prime Minister Alenka Bratusek’s April 12 announcement of plans to sell stakes in companies, including a bank, looks like an effort to stall rather than to obtain financing, according to Milan Smiljanic, head of trading at Perspektiva d.d. “There is skepticism that they are only buying time and will try to fix debt problems, avoiding privatization,” Smiljanic said by e-mail from Ljubljana. “There are no bank bidders at the moment.”

The strong currency action has opened the door to the short selling opportunity of a lifetime where one should commence selling into rallies as they appear, as in a bull market one buys in dips, but in a bear market one sells into pips.

Corporations, Institutional Investors, such as Banks, Insurance Companies, and Nonprofits, should all be short the stock market using DGP, OFF, STPP, UDN, EUO, as a basis of margin, in their short selling account.

This article has been posted to the Internet http://tinyurl.com/dx4k78r

Keywords: diktatmoney

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