EUR/JPY Rises To All Time High In Front Of Fed Meeting
Thursday, 26. June 2008, 05:45:23
It's likely the twilight last gleaming of the yen carry trade
The chart of EUR/JPY, FXE:FXY, the barometer of the yen carry trade, rose to an all time high of 1.70, encouraging global stocks, VEU, to rise higher as well, in advance of the release of the Federal Reserve's FOMC meetings' minutes scheduled for later today.
Today's EUR/JPY tops that reported by Shing-Ip Tsui in TradingMarkets.com, July 29, 2007, when the Yen moved sharply higher on a massive carry trade unwinding at that time.
Then as Alex A. Kazmarck reports, came more yen carry trade selloff in August 2007 to take the EUR/JPY down to its early September 2007 lows of 1.54.
The currency pair took its favored stocks higher as well
The long time destination of Bank of Japan 0.5% interest loans, the BRICS, EEB, rose as well as India, INP, which has a terrifically high PE, and has been selling off strongly lately, as the yen carry trade began to unwind, first on May 1, 2008, with the strike of 'financial ebola disinvestment' from banks to go long in indexed commodity ETFs and mutual funds, as well as commodity futures, $WTIC, and $CRB; then again on May 19, 2008 with the expiration of the TAF, TSFL and PDCF rally; and then more strongly on June 16th with the sell off of stocks globally, in response to the BoJ's release of its May minutes that inflation is an investment risk factor.
Gold falls to the apex of a pennant
Gold, GLD, fell to support at the apex, that is the pivot point, of a pennant awaiting resolution of traders convictions, upon release of the FOMC minutes.
Freddie and banks rise
Freddie Mac, FRE, rose from support at 20, after having fallen massively in a running triangle to trade at 20.98.
It's an abeyance not an abatement
Disinvestment from stocks globally will continue: the twin spigots of fiat wealth creation, Alan Greenspan and Ben Bernanke Federal Reserve Liquidity, and Bank of Japan lending at 0.5% lending have been turned off, with the result being stock and bond devaluation globally.
Rising interest costs and risk aversion to stocks caused by the level two assets and level three assets at banks, KBE, and investment bankers, KCE, as well as the rise of inflation globally cutting into corporate profits, have been the factors turning off the spigots of liquidity.
The metrics of liquidity, M2, MZM, and M3 show a topping off and downturn; thus we have, as Mike Mish Sheldon relates Peak Credit and financial asset deflation, and, house value deflation.
I do have to add, I quote Mr. Sheldon quite a bit, please understand I am not an Austrian economist as he is. I'm simply one who is for the investor, whether he be rich or poor. If the economic theories of the Ludwig von Mises Institute were implemented as policy, democracy would quickly dissolve, and workers would become slaves to a relative few wise elite. I know that things are quickly moving in that direction, but thank God, the Misesans never acquired political power.
We are not going to see consumable item price deflation; iron ore pellets, coal, bicycles, used clothing, chemicals, food, automobile repair, internet service, television service, utilities, glass used to fix repair windows, dental services, doctor services, etc. will not be deflating.
Global depression 2 has already commenced and cannot be turned back.
An investment demand for gold is rising
An 'investment demand for gold' has been rising since 'financial ebola' struck with institutional investors, such as labor unions and endowments trading out of the banks, KBE, and investment bankers, KCE, and speculated in commodity indexed ETFs, RJI, and mutual funds, PCRDX.
The financial ebola can be seen in the three black crows pattern of the high dividend payers ETF, PEY. The 'investment demand for gold is seen in GLD:VEU.
The Brics, EEB, trading below 200 day moving average; and the Russell 2000, IWM, trading below the pivot point of a 'broadening top pattern' of 72 going back to October 2006; and both the energy service companies, OIH, and the basic material stocks, IYM, having fallen parabolically lower; give clear, cogent, and convincing evidence that one cannot garner wealth by traditional investing long.
The ongoing 5 day Yahoo Finance chart of the Russell 2000, IWM, shows the RUT trading at 71.50, which shows in the Permabear's article You Sure Got Pretty Lips, and chart "serving as head and shoulder pattern which should be sold.
And his chart of the Transportation sector, $TRAN, shows the "sell off dates" in the yen carry trade:
1) the island reversal coming with the TAF sell off on May 19, 2008,
2) the announcement of the Bank of Japan findings that inflation is an investment risk factor sell off on June 16, 2008.
Dow Theory reemerges as a stock market fundamental investment principle: it holds that it is not until both transports and industrials turn together that a bull or bear market begins.
The fractal fall lower in transportation stocks, when taken together with the fact industrials have already turned lower, provides Dow Theory confirmation that a bear market is underway.
In fact the Proshares Bear Market 200% inverse of the 30 stocks, DXD, has been the best performer since the May 19, 2008 failure of the Fed's TAF rally and the beginning of yen carry trade unwinding.
Industrials have been under devaluation because of rising producer price inflation, that they have not been able to pass along; factors cited by Dow Chemical, DOW, Chief Executive Andrew Liveris as Demand Destruction. Dow is taking the lead and is now raising prices for a second time in a month.
Another factor that is negative for the industrials is that Karen Christensen of Rotman Magazine reports marketing guru Godin relating that We've entered a post-consumer age.
The spinning top doji and fall lower in US Steel, X, which was recently yen carry trade invigorated, relates that the age of fiat wealth is over.
The bear cross of 50 over 200 day moving average in the US Government bond ETF, TLT, and turn lower from its March 18, 2008 high, when the Fed announced support for the JP Morgan buyout of Bear Stearns and provision of TAF, TSLF and PDCF facilities, documents that a run on the US Treasuries is underway.
It's as Alf Field writes, stocks and bonds are going into the Abyss, and gold, $gold, while it could fall to $845 as seen in Jesse's chart, is going higher.
Selling the market short is a consideration; but I recommend and investment in gold.
Today's up provided a wonderful opportunity to add to one's short selling portfolio:
Most of these energy service company stocks provided in this linked database, as the sector rose 2.1% today; particularly North America Energy Partners, NOA, which rose 4.6% today and manifested a massive lollipop hanging man. Stocks in this sector include: BAS, BHI, BJS, BSIC, CLB, CPX, FTI, HAL, LUKF, NGS, NOA, NOV, NR, OIS, PDS, RES, SII, SLB, SPN, SWSI, TESO, TTI, WFT, WG, WHQ.
Steel producer, US Steel, X, which rose 5.0% today; I particularly recommend this because it serves as a proxy for the US Dollar, which is soon going into a major dive lower.
Fertilizer manufacturer, Intrepid Potash, IPI, which has lots of debt, and no PE, which traded unchanged today.
The Proshares 200% inverse ETFs are bear market investments that one buys and goes long with; as opposed to selling the items immediately above; it's too bad Proshares doesn't have a 200% inverse of the energy service companies.
Domestic stocks
SKK
SRS
SSG
TLL
SKF
Foreign and basic material stocks
EEV
FXP Look at how the bulls beat the bears back in FXP today; this provided a great opportunity to add more to FXP.
SMN
HXD Being that the Canadian Toronto S&P is natural resource and basic material laden, and investors are going to exiting these stocks, it's an opportune time to go short by investing in this ETF.
Debt
TBT Look at its beautiful chart; it commenced on an Elliot Wave 3 up on May 12, 2008; simply stunningly beautiful. Its rising heralds the Liquidation Thesis which holds that government services and payments, service sector jobs, public and private debt of all types, and unfunded retiree benefits are going to be liquidated, that is done away with.
Yes, clearly it was a day to add some to one's short position if one is guided by an investment maxim such as mine: "in a bull market be a bull; in a bear market be a bear. In a bull market, one buys on dips; in a bear market, one sells into strength".
Having said that, however, and having set forth a model short selling investment portfolio, I suggest that one not use it; as all one has is a dollar denominated investment; one doesn't want a dollar anything. The US dollar has depreciated, as supermodel Bundchen illustrates.
Yes its been debased by the Federal Reserves ongoing actions of providing TAF, TSLF and PDCF so that now a large part of the Fed's Balance Sheet is toxic junk, as subprime loans that once use to belong to the banks, were swapped out for AAA rated US Treasury Bonds.
The US Dollar, $USD, is going to lead all currencies lower in a death spiral together.
The downturn of USD/JPY from its recent 108.4 high documents that a run on the dollar is underway.
Feiwen Rong of Bloomberg reports that Asian investors are looking to buy gold as an inflation hedge.
While there is still opportunity, and still a low price, I encourage that one invest in gold via a trust account and not a brokerage account, to dollar cost average buy the gold ETF, GLD; and that one dollar cost average buy gold, at both BullionVault.com and GoldIsMoney.com.
Epic investment changes occurred this last week
The Macquarie Model died
Iceland's krona collapsed again
Today we passed from the twilight of the age of 'investment prosperity', and 'Milton Friedman neoliberal laissez-faire policies'; and into the dawning of the age of 'financial disinvestment and instability' and age of 'state corporate rule'.
The lollipop in the closing snapshot of the chart of EUR/JPY, FXE:FXY, shows the twilight ending of the former age of investment prosperity.
A new age is dawning, the age of 'Framework Agreement Security And Prosperity', that comes through announcements such as the Security and Prosperity Partnership of North America, and the Declaration of EU US Summit of June 10, 2008.
Now august councils of elites, such as the North American Competitiveness Council, the NACC, meet in summits, to direct working groups who appoint stakeholders who oversee and manage security and prosperity initiatives of state corporate rule, over natural and corporate resources and the factors of production for the benefit of the continent and its people.
Jerome R. Corsi of WorldNet Daily recently interviewed Council On Foreign Relations, CFR, member Robert Pastor, a leading intellectual force in the move to create an EU-style North American Community, who related that he believes a new 9/11 crisis could be the catalyst to merge the U.S., Mexico and Canada into a continental union.
And on a greater scale, the western world leaders now have authority to act, under the Declaration of EU US Summit 2008, on issues of global security and prosperity. And Jerome R. Corsi, also reports that this Declaration is of Magna Carta like importance, in that it provides a 7 year plan to align the EU and US in a super Western World Governing Body.
The first actions of the EU US Western World Government will be, as Chinaview.com.cn relates: solving the threat of Iran's controversial nuclear program.
Numerous sources such as the SeattleExaminer.com have posted the text of President Bush's appearance in Slovenia where he described the success of the EU US Summit 2008.
The Transatlantic Economic Council, TEC, is the supra organizing body for this initiative, and the White House posted its June 10, 2008 report 'Transatlantic Economic Council Report to the EU-U.S. Summit 2008' on the Internet.
This coming age is one where the four Horsemen of Revelation, they being, Sovereignty, Violence, Famine, and Chaos are riding, with ever increasing intensity and strength, as is documented in the Mike Mish Sheldon news that a Dead CEO's Empire Crumbles.
Keywords
New world order, newworldorder, nwo, one world government, oneworldgovernment, north american union, nau,
The chart of EUR/JPY, FXE:FXY, the barometer of the yen carry trade, rose to an all time high of 1.70, encouraging global stocks, VEU, to rise higher as well, in advance of the release of the Federal Reserve's FOMC meetings' minutes scheduled for later today.
Today's EUR/JPY tops that reported by Shing-Ip Tsui in TradingMarkets.com, July 29, 2007, when the Yen moved sharply higher on a massive carry trade unwinding at that time.
Then as Alex A. Kazmarck reports, came more yen carry trade selloff in August 2007 to take the EUR/JPY down to its early September 2007 lows of 1.54.
The currency pair took its favored stocks higher as well
The long time destination of Bank of Japan 0.5% interest loans, the BRICS, EEB, rose as well as India, INP, which has a terrifically high PE, and has been selling off strongly lately, as the yen carry trade began to unwind, first on May 1, 2008, with the strike of 'financial ebola disinvestment' from banks to go long in indexed commodity ETFs and mutual funds, as well as commodity futures, $WTIC, and $CRB; then again on May 19, 2008 with the expiration of the TAF, TSFL and PDCF rally; and then more strongly on June 16th with the sell off of stocks globally, in response to the BoJ's release of its May minutes that inflation is an investment risk factor.
Gold falls to the apex of a pennant
Gold, GLD, fell to support at the apex, that is the pivot point, of a pennant awaiting resolution of traders convictions, upon release of the FOMC minutes.
Freddie and banks rise
Freddie Mac, FRE, rose from support at 20, after having fallen massively in a running triangle to trade at 20.98.
It's an abeyance not an abatement
Disinvestment from stocks globally will continue: the twin spigots of fiat wealth creation, Alan Greenspan and Ben Bernanke Federal Reserve Liquidity, and Bank of Japan lending at 0.5% lending have been turned off, with the result being stock and bond devaluation globally.
Rising interest costs and risk aversion to stocks caused by the level two assets and level three assets at banks, KBE, and investment bankers, KCE, as well as the rise of inflation globally cutting into corporate profits, have been the factors turning off the spigots of liquidity.
The metrics of liquidity, M2, MZM, and M3 show a topping off and downturn; thus we have, as Mike Mish Sheldon relates Peak Credit and financial asset deflation, and, house value deflation.
I do have to add, I quote Mr. Sheldon quite a bit, please understand I am not an Austrian economist as he is. I'm simply one who is for the investor, whether he be rich or poor. If the economic theories of the Ludwig von Mises Institute were implemented as policy, democracy would quickly dissolve, and workers would become slaves to a relative few wise elite. I know that things are quickly moving in that direction, but thank God, the Misesans never acquired political power.
We are not going to see consumable item price deflation; iron ore pellets, coal, bicycles, used clothing, chemicals, food, automobile repair, internet service, television service, utilities, glass used to fix repair windows, dental services, doctor services, etc. will not be deflating.
Global depression 2 has already commenced and cannot be turned back.
An investment demand for gold is rising
An 'investment demand for gold' has been rising since 'financial ebola' struck with institutional investors, such as labor unions and endowments trading out of the banks, KBE, and investment bankers, KCE, and speculated in commodity indexed ETFs, RJI, and mutual funds, PCRDX.
The financial ebola can be seen in the three black crows pattern of the high dividend payers ETF, PEY. The 'investment demand for gold is seen in GLD:VEU.
The Brics, EEB, trading below 200 day moving average; and the Russell 2000, IWM, trading below the pivot point of a 'broadening top pattern' of 72 going back to October 2006; and both the energy service companies, OIH, and the basic material stocks, IYM, having fallen parabolically lower; give clear, cogent, and convincing evidence that one cannot garner wealth by traditional investing long.
The ongoing 5 day Yahoo Finance chart of the Russell 2000, IWM, shows the RUT trading at 71.50, which shows in the Permabear's article You Sure Got Pretty Lips, and chart "serving as head and shoulder pattern which should be sold.
And his chart of the Transportation sector, $TRAN, shows the "sell off dates" in the yen carry trade:
1) the island reversal coming with the TAF sell off on May 19, 2008,
2) the announcement of the Bank of Japan findings that inflation is an investment risk factor sell off on June 16, 2008.
Dow Theory reemerges as a stock market fundamental investment principle: it holds that it is not until both transports and industrials turn together that a bull or bear market begins.
The fractal fall lower in transportation stocks, when taken together with the fact industrials have already turned lower, provides Dow Theory confirmation that a bear market is underway.
In fact the Proshares Bear Market 200% inverse of the 30 stocks, DXD, has been the best performer since the May 19, 2008 failure of the Fed's TAF rally and the beginning of yen carry trade unwinding.
Industrials have been under devaluation because of rising producer price inflation, that they have not been able to pass along; factors cited by Dow Chemical, DOW, Chief Executive Andrew Liveris as Demand Destruction. Dow is taking the lead and is now raising prices for a second time in a month.
Another factor that is negative for the industrials is that Karen Christensen of Rotman Magazine reports marketing guru Godin relating that We've entered a post-consumer age.
The spinning top doji and fall lower in US Steel, X, which was recently yen carry trade invigorated, relates that the age of fiat wealth is over.
The bear cross of 50 over 200 day moving average in the US Government bond ETF, TLT, and turn lower from its March 18, 2008 high, when the Fed announced support for the JP Morgan buyout of Bear Stearns and provision of TAF, TSLF and PDCF facilities, documents that a run on the US Treasuries is underway.
It's as Alf Field writes, stocks and bonds are going into the Abyss, and gold, $gold, while it could fall to $845 as seen in Jesse's chart, is going higher.
Selling the market short is a consideration; but I recommend and investment in gold.
Today's up provided a wonderful opportunity to add to one's short selling portfolio:
Most of these energy service company stocks provided in this linked database, as the sector rose 2.1% today; particularly North America Energy Partners, NOA, which rose 4.6% today and manifested a massive lollipop hanging man. Stocks in this sector include: BAS, BHI, BJS, BSIC, CLB, CPX, FTI, HAL, LUKF, NGS, NOA, NOV, NR, OIS, PDS, RES, SII, SLB, SPN, SWSI, TESO, TTI, WFT, WG, WHQ.
Steel producer, US Steel, X, which rose 5.0% today; I particularly recommend this because it serves as a proxy for the US Dollar, which is soon going into a major dive lower.
Fertilizer manufacturer, Intrepid Potash, IPI, which has lots of debt, and no PE, which traded unchanged today.
The Proshares 200% inverse ETFs are bear market investments that one buys and goes long with; as opposed to selling the items immediately above; it's too bad Proshares doesn't have a 200% inverse of the energy service companies.
Domestic stocks
SKK
SRS
SSG
TLL
SKF
Foreign and basic material stocks
EEV
FXP Look at how the bulls beat the bears back in FXP today; this provided a great opportunity to add more to FXP.
SMN
HXD Being that the Canadian Toronto S&P is natural resource and basic material laden, and investors are going to exiting these stocks, it's an opportune time to go short by investing in this ETF.
Debt
TBT Look at its beautiful chart; it commenced on an Elliot Wave 3 up on May 12, 2008; simply stunningly beautiful. Its rising heralds the Liquidation Thesis which holds that government services and payments, service sector jobs, public and private debt of all types, and unfunded retiree benefits are going to be liquidated, that is done away with.
Yes, clearly it was a day to add some to one's short position if one is guided by an investment maxim such as mine: "in a bull market be a bull; in a bear market be a bear. In a bull market, one buys on dips; in a bear market, one sells into strength".
Having said that, however, and having set forth a model short selling investment portfolio, I suggest that one not use it; as all one has is a dollar denominated investment; one doesn't want a dollar anything. The US dollar has depreciated, as supermodel Bundchen illustrates.
Yes its been debased by the Federal Reserves ongoing actions of providing TAF, TSLF and PDCF so that now a large part of the Fed's Balance Sheet is toxic junk, as subprime loans that once use to belong to the banks, were swapped out for AAA rated US Treasury Bonds.
The US Dollar, $USD, is going to lead all currencies lower in a death spiral together.
The downturn of USD/JPY from its recent 108.4 high documents that a run on the dollar is underway.
Feiwen Rong of Bloomberg reports that Asian investors are looking to buy gold as an inflation hedge.
While there is still opportunity, and still a low price, I encourage that one invest in gold via a trust account and not a brokerage account, to dollar cost average buy the gold ETF, GLD; and that one dollar cost average buy gold, at both BullionVault.com and GoldIsMoney.com.
Epic investment changes occurred this last week
The Macquarie Model died
Iceland's krona collapsed again
Today we passed from the twilight of the age of 'investment prosperity', and 'Milton Friedman neoliberal laissez-faire policies'; and into the dawning of the age of 'financial disinvestment and instability' and age of 'state corporate rule'.
The lollipop in the closing snapshot of the chart of EUR/JPY, FXE:FXY, shows the twilight ending of the former age of investment prosperity.
A new age is dawning, the age of 'Framework Agreement Security And Prosperity', that comes through announcements such as the Security and Prosperity Partnership of North America, and the Declaration of EU US Summit of June 10, 2008.
Now august councils of elites, such as the North American Competitiveness Council, the NACC, meet in summits, to direct working groups who appoint stakeholders who oversee and manage security and prosperity initiatives of state corporate rule, over natural and corporate resources and the factors of production for the benefit of the continent and its people.
Jerome R. Corsi of WorldNet Daily recently interviewed Council On Foreign Relations, CFR, member Robert Pastor, a leading intellectual force in the move to create an EU-style North American Community, who related that he believes a new 9/11 crisis could be the catalyst to merge the U.S., Mexico and Canada into a continental union.
And on a greater scale, the western world leaders now have authority to act, under the Declaration of EU US Summit 2008, on issues of global security and prosperity. And Jerome R. Corsi, also reports that this Declaration is of Magna Carta like importance, in that it provides a 7 year plan to align the EU and US in a super Western World Governing Body.
The first actions of the EU US Western World Government will be, as Chinaview.com.cn relates: solving the threat of Iran's controversial nuclear program.
Numerous sources such as the SeattleExaminer.com have posted the text of President Bush's appearance in Slovenia where he described the success of the EU US Summit 2008.
The Transatlantic Economic Council, TEC, is the supra organizing body for this initiative, and the White House posted its June 10, 2008 report 'Transatlantic Economic Council Report to the EU-U.S. Summit 2008' on the Internet.
This coming age is one where the four Horsemen of Revelation, they being, Sovereignty, Violence, Famine, and Chaos are riding, with ever increasing intensity and strength, as is documented in the Mike Mish Sheldon news that a Dead CEO's Empire Crumbles.
Keywords
New world order, newworldorder, nwo, one world government, oneworldgovernment, north american union, nau,
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