Financial Market Report for May 2, 2011
1) … The Financial Sector, XLF, Banks, KRE, European Financials, EUFN, Emerging Market Financials, EFN, and small cap revenue firms, RWJ, turned lower, turning world stocks, ACWI, the Dow, DIA, the S&P, SPY, the Russell 2000, IWM, the New York Composite, NYC, Bonds, BND, and Commodities, DJP, and USCI, lower, as well as world currencies, DBV, emerging market currencies, CEW, and commodity currencies, CCX, lower. The world has likely passed through peak wealth today.
Financial Firms, XLF, turning lower included Australian Bank, Westpac Banking, WBK, UBS Bank Switzerland, UBS, Chile Banco de Chile, BCH, HDFC Bank, HDB, KB Financial, KB, and Citigroup, C.
We are witnessing the beginning of end of credit as it has been known, and the end of neoliberalism as a political and economic system. Last week we witnessed the downturn of the Chinese Financials, CHIX, and the BRICS Falling Lower On Inflation Destruction in India and Introduction of Chinese Feudal Economic Governance.
Out of the failure of seigniorage and of credit, as well as currencies world wide, a global chancellor, that is a Sovereign, and a global banker, that is a Seignior, will arise to provide new moneyness. Wealth is best preserved by transferring out of fiat assets and into gold as it dips lower to support possibly as low as $1,380. In other words, gold is in a bull market and will continue to be. In a bull market one buys on dips, whereas in a bear market one sells into strength. One could short sell tomorrow; and short sell dips in stocks as they occur, but one is still left with fiat based currencies whose value is based upon what will be falling world government bonds, BWX.
2) … The failure of the seigniorage of Neoliberalism is seen in the junior gold mining stocks, GDXJ, and the gold mining stocks, GDX, falling strongly lower; as well as in the gold mining stocks relative to the 30 Year US Government Bond, GDX:EDV, lower, as well as energy services, OIH, turning lower, and hard asset producers, HAP, turning lower.
Gold, GLD, turned 1.3% lower as the US Dollar, $USD, traded unchanged at 73. Gold is likely to fall lower to $1,380 before it turns awesomely higher once again.
All of the world currencies turned lower, except for the Euro, FXE, which closed at up 147.75 , the South Africa Rand, SZR, which closed up at 29.99, and the Swiss Franc, FXF, which traded unchanged.
Stocks and ETFs falling lower included
Silver Standard Resources Inc, SSRI
Clayton Williams Energy, CWEI,
Manufactured Housing Manufacturer: Cavco Industries. CVCO
Tableware products: Libbey, LBY,
Nanotechnology, FEI, FEIC
Processing Systems And Equipment: Polycom, PLCM,
BE Aerospace, BEAV,
American Tower, AMT
Exxon Mobil, XOM
Silver Miners, SIL
Gold Miners, GDX
Junior Gold Miners, GDXJ
Australia Small Caps, KROO
Small Cap Technology, PSCT
India Small Cap, SCIN
New Zealand, ENZL
Latin America, LATM
Small Cap Pure Value, RZV
Small Cap Russia, RSXJ
Energy Service, IEZ
Small Cap Energy, PSCE
Canada Small Cap, CNDA
Gulf States, MES
Home Building, ITB
Small Cap Consumer Discretionary, PSCD
3) ... Charts suggest a market top was achieved May 2, 2011
iPath Optimized Currency Carry ETN ICI Weekly, ICI,
South Korea, EWY,
Stocks: GLD, UUP, FXA, FXE, FXM, FXC, ICN, FXB, SZR, FXF, CYB, BZF, FXRU, FXY, AUNZ, DBV, CEW, CCX, XLF, KRE, EUFN, FGEM, RWJ, ACWI, DIA, SPY, NYC, IWM, BND, DJP, UBC, BCH, HDB, KB, C, CHIX, BWX, GDXJ, GDX, OIH, HAP, SSRI, CWEI, CVCO, LBY, FEIC, PLCM, BEAV, AMT, XOM, SIL, KROO, INDY, SCIN, ENZL, IGN, LATM, EEB, XSD, RZV