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I am not an investment professional. I do not engage in stock or currency trading. I am a blogger and investor who believes the failure of credit has created an investment demand for gold, and that gold bullion is the sole means of wealth preservation.
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  • ETFs To Sell Short For A Debt Deflationary Bear Market 0 comments
    Sep 3, 2010 3:15 AM | about stocks: ACWI, MOO, EWA, KBE, DBB, EUFN, NUCL, ITB, EIRL, GDXJ, LVS, EWW, PRN, PGX, PMR, IWN, XSD, PSCD, EWP, EWD, JJT, BND, TLT, MUB, JNK, LQD, BAB, EMB, CMF

    The chart of world stocks, ACWI, as of 8-2-2010 shows that the world stock are about ready to enter an Elliott Wave 3 of 3 of 3 down. 

    These rose 3% in the last week, while the stock ETFs present below rose strongly on EUR/JPY or AUD/JPY carry trade investing, resetting them for successful short selling.

    I present on Stockcharts.com: A listing of ETFs to sell short and ETFs to buy long for a debt deflationary bear market and describe the short selling opportunity below.

    Stock ETFs to go short can be seen in this Finviz screener of stock ETFs.  These rose this week largely on yen carry trade investing, as seen in the chart of FXE:FXY and FXA:FXY, and are now reset to fall lower.  

    MOO, Agriculture Business, 5% ….. Chart shows great fall potential

    EWA, Australia, 9% ….. Has seen tremendous carry trade investing

    KBE, Banks, 6% ….. Has great fall potential

    DBB, Base Metals, 6% ….. Is currently over bought

    EUFN, European Financials, 9% …. These banks have impaired lending capability

    NUCL, Nuclear Energy, 4% … Chart shows it currently has rallied; just like it has in the past prior to turning lower.

    ITB, Homebuilding, 6% ….. Lots of fall potential

    EIRL, Ireland, 4% ….. Has significant sovereign debt issues.

    GDXJ, Junior gold miners, 4%, ….. I have documented in many articles that these are disconnecting from the price of gold; and I have documented that these generally turn lower with US treasuries, in many articles.

    LVS, Las Vegas Sands, 8%, ….. Has rallied strongly; will fall quickly, rewarding those who are short.   

    EWW, Mexico, 5% ….. Has been under attack from currency traders

    PRN, Industrials, 6% …. Rallies strong at market turns; this time is no exception.

    PGX, Preferred, 0% ….. Chart shows two dark cloud cover candlesticks and two lollipop candlesticks; it has great fall potential.

    PMR,  Retail, 5% ….. Has Great fall potential; chart shows a lollipop hanging man candlestick

    IWN, Russell 2000 Value, 5% ….. Has great fall potential

    XSD, semiconductors, 3% … Given that there is significantly less demand seen for personal electronics, this will be a leading loss leader, greatly rewarding the short seller.  

    XLYS, Small Cap Consumer Discretionary, 5% … Has risen through resistance; the small cap consumer discretionary stocks have consistently been strong bears in downturns.

    EWP, Spain, 7% ….. Has risen to strong resistance 

    EWD, Sweden, 8% … The Swedish Krona, FXS, is moved by the currency traders, greatly rewarding those who go long in rallies and short in downturns.  

    JJT, Tin, -1% … Tin is over-bought.

    Leveraged ETFs to go long; these definitely are best traded by the experienced trader; seen in this Finviz screener of leveraged ETFs: TMV, 6%, FAZ, -10%, SOXS, -3%, DGP, +2.0%, TBT, +0.03%, SMK, -5%, SJH, -6%, SSG, -1%, AGQ, +6%, EPV, -7%.

    Debt ETFs to sell short can be seen in this Finviz Screener of Debt ETFs …. The 30-10 Yield Curve, $TYX:$TNX, is flattening; this will release a wave of debt deflation in bonds, BND … and will send the United States to the poor house … Great austerity will be imposed by edict …. Get ready for investment shock and awe.   

    BND, +0.10

    TLT, -0.15

    MUB, +0.02

    JNK, +1.22

    LQD, +0.11

    EMB, +0.38

    CMF, +0.12

    ZROZ -1.10%

    Conclusion

    The stock market turned bearish 8/11/10 with semiconductors and small cap pure value shares leading the way down.

    The 30-10 yield curve, $TYX:$TNX, began flattening on August 11, 2010, on the Federal Reserve Chairmans announcement of August 10, 2010 of the purchase of mortgage-backed securities.

    Then on August 27, 2010, the Federal Reserve Chairman stated the possibility of an even larger purchase of debt; this caused the bond rally in US Treasuries, TLT, that began April 6, 2010 to fail, sending bond prices lower and interest rates higher.

    Systemic risk is quite high. Liquidity evaporation could happen quite easily, resulting in a liquidity crisis, where there may not be enough buyers of investment securities to meet sellers demand. Because of this risk I am invested in Gold bullion.. 

    I believe that out of the soon coming liquidity crisis, American Express, AXP, will be integrated with the US Treasury, through a Presidential Executive Order, or will become reconstituted as a bank, and be integrated with the Federal Reserve. Then what little lending occurs, will take place through this state-corporate combine, overseen by a Credit Seignior, that is a lending boss.



    Disclosure: I am invested in gold coins
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