THURSDAY 10/9/14; Global Stock and Bond Rally Overnight; Germany Record Low 10-Year Yield; 'Japanification of Germany'; BOE Rate Decision; PEP; Wholesale Trade; ECB President Draghi Speaks; US Stocks Collapse; INDU -335; SPX -41; COMPQ -90

The dollar/yen currency pair drops to 107.74 so the stronger yen punishes the NIKK down -0.8% and Japan does not join the global stock market party. Japan machinery orders are up +4.7% month on month handily beating expectations. The US dollar index drops under 85 to 84.993. The weaker dollar due to the Fed’s dovish comments is sending the euro higher to 1.275. Pound 1.6203. Aussie dollar 0.8







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fety stocks such as consumer staples, utilities and REIT’s hold up among the carnage. XLP -1%. XLU -1.6%. IYR ends flat. CAT -3.3%. GS -2.9%. JNJ -2.7%. VOD -6% on a downgrade. JCP collapses -7% already painting a sad retail holiday season. AAPL is up marginally on the day. RVBD gains +3% on an upgrade.

After the bell, FDO drops -2.3% in the AH’s after missing on earnings. SYMC jumps +2.4% on news the company will split into two to unlock value. The financial engineers continue to produce wealth from whole cloth. CUDA bounces +4.2% on robust earnings. Joe’s Jeans are selling well and JOEZ pops +5%. Activist investor David Einhorn announces a large stake in CVEO, a company that provides barracks and other support facilities for oil and engineering projects, which catapults +9%.

WTIC crude oil falls under 85 to 84.25 first time since November 2012 two years ago. They are giving oil away. Oil prices are in free fall with the Saudi’s driving the collapse lower by maintaining production rates despite the global over supply conditions. The Saudi’s are trying to break the back of the oil sands and fracking companies in the US and Canada.

TSLA unveils the new ‘D’ word product which is a new dual-motor all-wheel drive Model S sedan. The new model offers auto-pilot software, faster speeds and better efficiency. A rare and unique pink diamond sells for $17.7 billion at a BID auction in Hong Kong. The wealthy continue to push hard asset prices higher spending their huge stock market gains provided by the Fed and other central bankers.