1 Response to U.S. Sector ETF Performance – May 19

1. theyenguy says:

   May 20, 2014 at 2:32 AM

   On Monday, May 19, 2014, Global Dividend Growth Excluding The US, DNL, a Large Cap Blend ETF, likely peaked out, as Industrial Growth Sectors, Global Industrial Producers, FXR, Small Cap Industrials, PSCI, Small Cap Growth, RZG, Semiconductors, SOXX, and Transportation, XTN, and included such stock as MHK, AXE, TYC, ROK, FLS, CFX, EMN, DOW, DAKT, BHE, CR, IR, MEAS, ROC, RPM, POL, ECL, SXT, KWR, CHMT, WOR, KS, BERY, AOS, GPK, MAS, CTAS, SEE, TXN, F, MU, QCOM, GMED, COO, DAL, traded higher on the day, largely on recovery trading from last week’s sell foo.

   Other High Beta Sectors, Regional Banking, KRE, Investment Bankers, KCE, Nasdaq Internet, PNQI, Networking, IGN, Internet Retail, FDN, Biotechnology, IBB, and Software, IGV, traded higher on the day as well in in same recovery trading.

   Emerging Market High Dividends, EMHD, and Emerging Market Financials, EMFN, traded to new rally highs, on higher Emerging Market Currencies, CEW.

   The seigniorage, that is the moneyness of the Banker Regime, started to give way more fully on May 19, 2014, as traders derisked from debt trades and delveraged out of currency carry trades in Australian Equity, AUSE, KROO, EWA, WBK, BHP, on the trade higher in the Yen, FXY, and a trade lower in the Australian Dollar, FXA. And likewise they took flight from the Middle East Equity, GULF, MES. All as Zero Hedge posts Conflict Between China And Vietnam Is Imminent – China Piles Troops, Tanks, Artillery And APCs Near Vietnam Border.

   German Small Caps, GERJ, traded lower as Deutsche Bank, DB, traded lower.

   Brazil, EWZ, EWZS, traded lower as Brazil Banks, BBD, BSBR, traded lower, as Spain’s Bank, SAN, traded lower.

   High Yield Interest Rate Hedge, HYHG, Brazil Electric Utilities, EBR, CPL, ELP, PAM, DEP, and US Electric Utilities, XLU, PUI, traded lower as the bond vigilantes called the Interest Rate on the US Ten Year Note, ^TNX, higher to 2.54%, and steepened the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, which is seen in the Steepner ETF, STPP, steepening.

   Junk Bonds, JNK, and Ultra Junk Bonds, UJB, traded to new all time highs, while Aggregate Credit AGG, traded lower, on lower 30 Year US Treasury Bonds, EDV, and lower US Treasury Notes, TLT.

   The bond vigilantes took control of the Benchmark Interest Rate, ^TNX, when it traded higher from 2.49%, on October 23, 3013. And today May 19, 2014, they reasserted their control over this Benchmark Interest Rate, by calling it higher yet to 2.54%, reflecting that the Rider on the White Horse, seen in Revelation 6:1-2, has the Bow of Economic Sovereignty, and is effecting economic coups throughout the world, as is seen in the political instability in SE Asia, and as is seen in the Ambrose Evans Pritchard report Putin To Give Ground In China To Seal Gas Deal. The long coveted prize would allow Russia to switch sales from Europe to the Far East and transform the Eurasian gas market. Higher interest rates globally mean economic destabilization and economic deflation, coming largely from investors derisking out of debt trades and deleveraging out of currency carry trades.

   Given this model, look for High Yielding Debt, JNK, LWC, EU, EMB, HYD, EMLC, EMCD, BABS, HYXU, PZA, to trade lower in value. And look for Market Leading Banks and Financial Institutions to begin to rapidly fall lower in value; these include, BOFI, IBN, SAN, BSBR, ITUB, BAP, BCA, SHG, WBK, GGAL, BMA, IX, CIB, RY, BNS, PUK, GNW, TMK, BANF, CBIN, TFSL, SFNC, CNS, LM, BR, VOYA.

   Economic growth was a largely a side benefit, that came from investment gains, flowing from the credit stimulus of Global ZIRP; economic growth was a function of the bygone era of currencies, and the age of credit.

   The dynamos of creditism, corporatism, and globalism are winding down on the failure of credit and breakdown of currencies. The singular dynamo of regionalism will be powering up the age of debt servitude, where regional economic stability, security and stability become the driving factors of economic activity.

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