Credit Impulse From QE Fading

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A good proxy for the expansion and/or contraction of the shadow banking market is the change in the amount of commercial paper outstanding.  Successive rounds of QE–represented by the expansion of the Federal Reserve’s balance sheet–have had a stimulative, but short lasting impact on the expansion of shadow banking credit.

Gold Stocks Lead Gains

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With the price of gold up another $23 today, after surging $40 last week, gold stocks are the leaders in the MSCI World index today. Adding fuel to the move is the plunge in the USD today, stepping down by half a point so far this morning.

MSCI North America Extended

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We calculate the percentage of companies above certain moving averages (MA).  Generally, when 70-80% of companies are above a MA, stocks are overbought and when only 20-30%, are above a MA, stocks are oversold. Currently, 89% of MSCI North America companies are above the 5-day MA, 84% are above the 50-day MA.