Japan factory output data is better than expected indicating
a strong start to the year. Japan’s inflation surprises to the upside. Retail
Sales post strong gains up +4.4% year over year. The Nikkei and Topix sell off,
however, since the dollar/yen drops under 102 (stronger yen). The Japanese data
may indicate a cyclical rebound rather than a sustainable recovery. The Chinese
Yuan is set for biggest weekly loss ever. China is watching the Asian
currencies weaken and is weakening the renminbi to keep pace. By weakening the .....
[Text is Redacted: Purchase February 2014-02 to Read the Complete Chronology]
[Text is Redacted: Purchase February 2014-02 to Read the Complete Chronology]
For the month, the major indexes are all up from +4% to +5% printing
the best February since 1998. February is typically one of the worst stock
months of the year. The SOX is up +6.6% during the month with semiconductors leading
the way. Airlines, XAL, fly +9% higher and biotech, IBB, is up +7.5%. Long traders
continue to chase airlines, biotech, tech and healthcare stocks; the leaders
from 2013. After the bell, Fast Retailing out of Japan is in talks to buy J
Crew. DRI gains +2.5% as it avoids and muzzles questions from activist
investors.
At 5 PM, President Obama delivers remarks concerning the
crisis in Ukraine. The president is “deeply concerned” over military movements
by the Russian Federation inside Crimea. He says the latest developments do not
benefit Ukraine, Russia or Europe (did not mention the US) and that the
Ukrainians need to decide their own path forward. He stresses that everyone
should remain calm and any violation of Ukraine sovereignty would be “deeply
destabilizing.” The president said that the US “will stand with the
international community” and “there will be costs” if the Russian aggression
continues but he did not say what the costs were or who would administer these
costs.
The president’s statement is very terse, only a few minutes,
and he exits the Whitehouse briefing room without taking any questions. An hour
later he is shown on television having fun at a democratic fund raising happy
hour party. Russia will likely pay little attention to his comments. Approximately
2000 soldiers are clearly in control of Crimea but the uniforms display no
clear identification. Cargo planes are arriving at the airports unloading Russian
military vehicles. The soldiers are presumed to be contractors and mercenaries
working for Russia; a hybrid military force. Russia is clearly occupying Crimea.
Putin’s actions will dictate the fate of Ukraine. A Russian spy ship is docked
at a Cuban port over the last two days and is capable of monitoring both US military
and non-military communications and activities.
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