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The War On Cash Is Increasing
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February 19, 2016

Many don’t notice the stealth war on cash but it’s quite real.

As countries move to negative interest rates the thrust of the policies are to force people to spend. No mattress money allowed thank you. Nations like Japan, Sweden, Denmark and Switzerland have already implemented these policies.

2-19-2016 4-47-17 PM

Central Banks are basically charging member banks to hold cash. The superficial belief is to force loan making and spending which will stimulate inflation and growth. The minus rates being applied by the ECB, Denmark, Switzerland, Sweden, and Japan havefailed to juice growth, or stocks, or inflation.

A clear ulterior motive is by eliminating cash, countries will increase tax revenues by negatively effecting the private economy and illegal activities at the same time. A recent move by the ECB is to eliminate the €500 note. This was followed this week by influential economist Larry Summers desires to eliminate the $100 bill. And, so it goes. But clearly the government wishes to squeeze cash transactions.

2-19-2016 4-47-57 PM

Stocks were basically flat on the day overcoming early selling. Oil prices fell once again hurting the energy sector.

Market sectors moving higher included: Biotech (IBB), Small Caps (IWM), Brazil (EWZ), Hong Kong (EWH), Thailand (THD) and little else.

Market sectors moving lower included: Most everything else.

Below is the heat map from Finviz reflecting those ETF market sectors moving higher (green) and falling (red). Dependent on the day (green) may mean leveraged inverse or leveraged short (red).

2-19-2016 4-48-16 PM

Volume was once again light and breadth per the WSJ was mixed once again.

2-19-2016 4-48-55 PM

12-17-2015 9-04-44 PM Chart of the Day

 

 

 

2-19-2016 4-49-09 PM USO

Charts of the Day
  • SPY 5 MINUTE

    SPY  5  MINUTE

  • SPX DAILY

    SPX DAILY

  • SPX WEEKLY

    SPX WEEKLY

  • INDU DAILY

    INDU DAILY

  • INDU WEEKLY

    INDU WEEKLY

  • RUT WEEKLY

    RUT WEEKLY

  • NDX WEEKLY

    NDX WEEKLY

  • XLB WEEKLY

    XLB WEEKLY

  • XLE WEEKLY

    XLE WEEKLY

  • XLF WEEKLY

    XLF WEEKLY

  • XRT WEEKLY

    XRT WEEKLY

  • XLU WEEKLY

    XLU WEEKLY

  • IYT WEEKLY

    IYT WEEKLY

  • XLI WEEKLY

    XLI WEEKLY

  • XLV WEEKLY

    XLV WEEKLY

  • ITB WEEKLY

    ITB WEEKLY

  • HYG WEEKLY

    HYG WEEKLY

  • TLT WEEKLY

    TLT WEEKLY

  • UUP WEEKLY

    UUP WEEKLY

  • FXY WEEKLY

    FXY WEEKLY

  • GLD WEEKLY

    GLD WEEKLY

  • GDX WEEKLY

    GDX WEEKLY

  • SLV WEEKLY

    SLV WEEKLY

  • DBB MONTHLY

    DBB MONTHLY

  • DBC MONTHLY

    DBC MONTHLY

  • EFA WEEKLY

    EFA WEEKLY

  • IEV WEEKLY

    IEV WEEKLY

  • EEM WEEKLY

    EEM WEEKLY

  • NYMO DAILY

    NYMO  DAILY

    The NYMO is a market breadth indicator that is based on the difference between the number of advancing and declining issues on the NYSE. When readings are +60/-60 markets are extended short-term.

  • NYSI DAILY

    NYSI DAILY

    The McClellan Summation Index is a long-term version of the McClellan Oscillator. It is a market breadth indicator, and interpretation is similar to that of the McClellan Oscillator, except that it is more suited to major trends. I believe readings of +1000/-1000 reveal markets as much extended.


     

  • VIX WEEKLY

    VIX WEEKLY

    The VIX is a widely used measure of market risk and is often referred to as the "investor fear gauge". Our own interpretation has changed due to a variety of new factors including HFTs, new VIX linked ETPs and a multitude of new products to leverage trading and change or obscure prior VIX relevance.


     

It was an impressive week for bulls, that’s for sure despite relatively weak volume.

Every dog has its day is all I can say in addition to—where’s the beef! Bulls will need to answer this since next week is heavy with economic data.

Let’s see what happens. 

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Dave Fry is founder and publisher of ETF Digest and has been covering U.S. and global ETFs since 2001.

Top 50 Investing Blogs.

Top 25 Best ETF Newslettersin 2015.

ETF Digest was awarded one of the most informative ETF websites in the10th Annual Global ETF Awards.



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Disclaimer: The charts and comments are only the author's view of market activity and aren't recommendations to buy or sell only any security. Market sectors and related ETF's are selected based on his opinion as to their importance in providing the viewer a comprehensive summary of market conditions for the featured period. Chart annotation's aren't predictive of any future market action rather they only demonstrate the author's opinion as to a range of possibilities going forward. More detailed information, including actionable alerts, are available to subscribers at www.etfdigest.com

 

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