Daily Top Ten – November 22, 2016

1.Risk Happens Fast with ETFs…$546 Million Pulled from EM Bonds in One Week.

Emerging Markets Biggest Outflows Since 2004


Strong dollar will make foreign debt more expensive.



2. Follow up to my Comments Yesterday about Small Cap Leadership…Russell Wins Streaks Bullish.


The last streak to surpass 11 days occurred more than 13 years ago, when Russell2000 won 12 days in a row, gaining 11.9% — smaller than the gains the current win streak has already accumulated. The longest-ever winning streak dates back to 1988, at 21 straight days in the black.  One month after an 11-day win streak, RUT has returned an average 3.5%, and is positive a whopping 88.9% of the time

Thanks to Dave Lutz at Jones for chart.

3. Small Cap Healthcare 13% Jump Post Election.


4.Transports +18% YTD vs. Dow +9%

Transports short term overbought RSI 82


5.Read of Day..Buyer of Last Resort for Euro Bonds…Hedge Funds.

Struggling Euro Zone Nations Increasingly Forced To Turn To Hedge Funds For Debt Funding

With pensions around the world increasingly reallocated funds to equity markets in a desparate effort to close funding gaps amid recklessly low central banking rates, and traditional banks tapped out by regulatory restrictions on their balance sheets, struggling Euro Zone countries are increasingly being forced to turn to hedge funds to fill their debt issuances.  As Reuters points out, struggling nations like Spain, Italy, Belgium and France have seen a 3x increase in debt issuance allocations to hedge funds.

With banks playing a less active part in the sovereign debt market because of pressures on their balance sheets, several countries have turned to hedge funds to sell their targeted amount of bonds, according to data, officials and bankers.

Spain, Italy, Belgium and France have sought to lock in record-low borrowing rates this year with 50-year bond issues for 3-5 billion euros ($3.2-$5.3 billion). Each of them reported a historically high allocation of 13-17 percent to hedge funds.

By contrast, just three years ago, Spain, Italy and Belgium were selling only 4-7 percent of their syndicated bond sales to that community of investors, according to data from IFR, a Thomson Reuters company. There is no comparable data for France, which does not routinely record hedge funds’ allocation.

“Hedge funds have grown in importance,” said Damien Carde, head of public-sector syndication for RBS, which handles bond issues for several euro zone countries. “If you need to bring a large syndication to the market it is always a plus to have that community on board.”

Read full story at zerohedge.



6.China’s Service Economy now 50% of GDP.

China’s economy is rapidly rebalancing toward services

While China’s position as factory to the world gets a lot of attention, the country’s economy is building out its service sector — and it is making rapid progress.

Services now account for 50% of China’s GDP, up from 42% 10 years ago, according to World Bank data. This continuing shift may indicate the government’s planned move toward services, innovation, and household consumption as the new economic drivers is going along to plan.

As Capital Economics wrote in a note last year, “the answer to the question of whether China’s economy is sinking or swimming lies in its service sector.”



7.Fear and Greed Index…From Fear to Greed in One Month.


8.First Time in History …”The Death of Split Ticket”

From our Food for Thought section: The first time in history every state voted for the same party for president and for the senate. Split ticket voting seems to have died.


Source: @MaxCRoser, ‏@Tmp_Research

9.Divorce Hits 35 Year Low.

Every year, the center uses census data to calculate the previous year’s marriage and divorce trends. This year’s calculations show that divorce has been dropping quickly, to a rate of 16.9, down from 17.6 in 2014 and a peak of almost 23 in 1980.9


10.The Secret to Managing Being Overwhelmed

Stop rushing and learn the art of pacing

Posted Oct 31, 2016

Over the years, throngs of discombobulated patients have come to my office. Mothers, actors, teachers, dog groomers, each with their own reasons why life is out of whack.

When they are feeling overwhelmed one of the first aspects I address is pacing: a basic energetic rhythm I train my patients to intuitively sense. Just as heart beat and respirations tune our physiological tempo, pacing sets our subtle energy clock’s timing. Often we get caught in extremes.

Of all the pacing dilemmas, rushing tops the list for draining many of us. Webster’s dictionary defines it as “a violent forward motion; to act with haste…in a short time at a high speed.” Energetically speaking, it’s running on more cylinders than you’ve got. It’s so toxic because the negative energy is cumulative. On perpetual overload, your physiology responds: cortisol, the “stress hormone,” surges; seretonin, a chemical protector against depression and anxiety, plummets. That, in combination with an inevitable diminution of subtle energy completes the downward spiral.

We rush for many reasons. To dull emotional pain. To flee from anxiety, depression, or feeling we’re not enough. In response to unrealistic expectations of what we can accomplish in a finite period. Fear of stillness and silence. Whatever the reasons, rushing is different from operating quickly and efficiently when your rhythm’s in sync with a busy balanced life.

These intuitions give rushing away.

  • Your energy feels scattered
  • You have little or no awareness of your body
  • You experience a subliminal or overt sense of panic
  • Your ability to listen is impaired, as is memory for details.For me, rushing is a consciousness shrinking altered state. It blurs into a bad hallucination, as if my energy body fragments and races ahead of itself while the material me is trying to catch up–a tinge of vertigo, a nauseating disconnect. Be certain: rushing steals well-being, must never be construed as harmless.Even so, I understand how addictive rushing can be. As a medical student at USC, my sixteen hour days were packed with life-and-death emergencies. On call every third night. This grueling pace continued when I opened my private practice. The most maddening part was wearing a pager. Strapped to my belt, it’d go off so frequently I’d catch myself fantasizing it would self destruct.  Make changes now to address your overwhelm with the following solutions to reline your pacing rhythm from my book, Positive Energy.

Solutions to Adjust your Pacing Rhythm

  • After years of whirling like a dervish, it finally sank in: my energy was being stretched way too thin. Wound tight, I’d get terse, snippy, hurrying myself and others along. It’s hard to be nice when you’re frantic. Worse, I’d drive and rush: more than once I got a speeding ticket zipping from the gym to the market so I could get home to unwind in a tub. I was rushing to relax! Ultimately, I rushed my way right into an energy crises. Refusing to slow down, my body intervened. A profound weariness came over me which lasted nearly year. I was forced to cut back on speaking engagements and other commitments. Doing so made me realize how much I craved the nourishing sense of presence that being in the moment brings.
  • For me, rushing is a consciousness shrinking altered state. It blurs into a bad hallucination, as if my energy body fragments and races ahead of itself while the material me is trying to catch up–a tinge of vertigo, a nauseating disconnect. Be certain: rushing steals well-being, must never be construed as harmless.
  • To realign with an in sync rhythm. Make gradual changes. Focus on one area at a time. Ask yourself: What kind of change would feel good? Focus on small, do-able chunks, not an instant overhaul. Say, your job. Try out ten minutes of a nurturing pace. Savor how that feels. Then build on it. See if your well-being improves. Energy never lies.
  • If you’re a rusher: Let at least a few minutes each day be a meditation on energy focus. Rushing is best reduced in increments. Don’t get ahead of yourself. Attempt to be totally present. Open your senses. Take pleasure in tulips, cascading fountains, the aroma of baking bread. Respond with your full attention. If this exercise feels good, try it daily. Then increase the duration from there.
  • If you’re on deadline:  To survive these potentially oppressive clinches be sure to plan mini-breaks to utilize a quickie subtle energy technique that has saved me. For just a minute, take a few deep breaths while touching your intuitive center–this heightens focus and brings you back to center.
  • If your pace is too slow: Intuitively tune into an activity that brings you joy. It can be anything: ice skating, gardening, volunteering at a soup kitchen. Once that memory is rekindled plan to do it. If the activity makes you happy, begin to incorporate it into your routine. The aim is to jump start positive energy if you’re underperforming or shutting down in another arena.

The key to success is to ease into a new pace. As some of my overzealous patients have discovered, making giant leaps too quickly can sabotage your efforts. They end up feeling like failures, demoralized, until they emotionally regroup and begin again. Please, no grand gestures. Just start moving in the right direction. This sends a positive message to life force. Don’t worry if you slip into old habits. We all do. Every minute you’ve succeeded renews vitality and awe.