TRADER ALERT: The USD/JPY Continue To Silde, Japan’s Debt Exceeds 1 Quadrillion Yen, Retail Investor Is Now A Net Seller of Equities…

The USD/JPY Currency Chart Tells You More Than You Think

US Dollar Selloff Continues, S&P 500 Stalls Near May Top

THE TAKEAWAY: The US Dollar dropped for a fifth consecutive day, hitting the lowest levels in close to 2 months, while the S&P 500 is stalling near the May swing top.

Markets quiet, but wait until fall and Congress’ budget showdown

Did Retail Investors Just Fold?

After BTFATH in June, and being rotated into by the professionals in early July, it would appear that the apparent ‘greater fools’ are heading for the exits now. As we noted here, the ‘retail’ buyer of what the institutions were selling suggested things were getting a little too exuberant but as TD Ameritrade’s Investor Movement Index shows that the retail investor is now a net seller of equities. Their proprietary index is now at its lowest level for 2013 and the last few days in stocks suggest the institutional sellers have run out of willing ‘at any cost’ great rotating equity buying ‘greater-fools’ (despite the mainstream media’s call for moar BTFATH). Between Monday’s record-breaking ‘quote spam’ and the JPY carry unwind occurring, we await the next call for Mr. Bernanke (or Kuroda) to get back to work.



Source: TD Ameritrade

Not Even More Fake Chinese Data Can Push Futures Higher

Japan’s Debt Exceeds 1 Quadrillion Yen as Abe Mulls Tax Rise

Japan’s national debt exceeded 1,000 trillion yen for the first time, underscoring the case for Prime Minister Shinzo Abe to proceed with a sales-tax increase to shore up government finances.

The country’s outstanding public debt including borrowings reached a record 1,008.6 trillion yen ($10.46 trillion) as of June 30, up 1.7 percent from three months earlier, the finance ministry said in Tokyo today. Larger than the economies of GermanyFrance and the U.K. combined, the amount includes 830.5 trillion yen in government bonds.

“Ballooning public debt underlines the need for Abe to push for a sales-tax increase,” said Long Hanhua Wang, an economist at Royal Bank of Scotland Group Plc in Tokyo. “This is a minimum policy requirement for his government.”

Article Continues Below
Both China and Russia have begun discussing a new Bretton Woods-style agreement which would back the Yuan with gold and change the very fabric of the international monetary system. This concept falls right in line the developing nations’ demand for a replacement of the U.S. dollar, and, the IMF’s new Special Drawing Rights currency, which is partially valued in gold, and backed by the IMF’s unaudited gold horde:JP Morgan fleeing commodities markets? Paper gold decoupling from physical gold? China and Russia suggesting a new Bretton Woods? Is this a signal for something monolithic on the horizon for the global economy? If there is a sudden shift by developing nations away from the dollar and towards a basket currency system partially valuated in gold, this would be disastrous for the American fiscal structure. I have been tracking the slow dump of the greenback since 2006, and I have to say, I’ve never seen escalation like I have seen in the past year. If foreign central banks are planning to drop the dollar as the world reserve, their behavior in metals markets suggests they may be ready to act soon.
Despite All Of The Stimulus, The Economy Is Still Slogging
At current levels the market is not only overvalued, but is ignoring the sputtering U.S. economic recovery, the slowing of earnings growth, and the prospect of tapering QE in the second half, perhaps as early as September.  The additional prospect of a stalemate in Washington over the federal budget, the debt ceiling and the potential shutdown of the government is also being overlooked, not to mention the serious slowdown in global growth.Despite unprecedented monetary ease, the economy has slogged along at an average 2% growth rate over the last three years and seems to be slowing down even more in 2013.  GDP grew at an annualized rate of only 1.1% in the 1st quarter and 1.7% in the 2nd with final demand even lower at 1.3% and 0.3% respectively.

Obama’s Housing Program: A Windfall for Wall Street

Why Marc ‘Wolf’ Faber still thinks a 1987-style crash is coming

Of course, the 1987-crash theme is not a new one for Faber. He made similar predictions in May and February. So how many times is Faber going to cry wolf before we see this happen? Well, ZeroHedge says he may be on to something, if you look at a Hindenburg cluster that’s been happening over the last four days. This indicator warns when more than 2.2% of traded issues are hitting new highs, while another 2.2% or more are making new lows. (Read more on the Hindenburg Omen.)


Follow IWB on Facebook and Twitter