TUESDAY 5/13/14; Retail Sales; Business Inventories

The dollar/yen is 102.33 well above the sub 102 numbers reflecting the weaker yen that creates the stronger stock market. The NIKK gains +2% following the US lead. Singapore, Malaysia and Thailand markets are closed today. China retail sales and other data show a continued slowdown occurring. Secretary Lew is in China discussing the yuan exchange rate and policy. FB explores the idea of opening an office in China to reverse years of non-activity. The SSEC is flat with HSI up +0.4%. KOSPI gains +0.9%.

India’s exit polls show that Narendra Modi’s Bharatiya Janata Party is the winner which will create a more business-friendly environment; hence the BSE pops +2% higher continuing to print record highs. Pro-Russian separatists in East Ukraine.................





[Text is Redacted: Purchase May 2014-05 to Read the Complete Chronology]

The Nasdaq and RUT indexes sell off today losing -0.3% and -1.1%, respectively. Small caps are thrown out the window so yesterday’s joy hints of more short-covering than anything. The Bundesbank comments about supporting the ECB to stimulate the European economy greatly helped keep the broad stock market elevated today. The ECB appears locked in to providing stimulus on 6/5/14.

A tragic coal mine explosion in Turkey kills 205 miners with the death rate rising. 100 other miners are trapped. $745 million in art sells at a two-day Christie’s auction. The demand is robust with wealthy world citizens bidding prices higher and higher. Obviously the art bubble is expanding to epic proportions.