Monday, August 26, 2013

Stocks Reversing Lower into Finanl Hour on Rising Mideast Unrest, Emerging Markets Debt Angst, Global Growth Fears, Financial/Utility Sector Weakness

Broad Equity Market Tone:
  • Advance/Decline Line: Modestly Lower
  • Sector Performance: Mixed
  • Volume: Light
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 14.44 +3.29%
  • Euro/Yen Carry Return Index 137.35 -.24%
  • Emerging Markets Currency Volatility(VXY) 10.78 +.56%
  • S&P 500 Implied Correlation 49.53 +1.23%
  • ISE Sentiment Index 111.0 +2.78%
  • Total Put/Call .89 +12.66%
  • NYSE Arms 1.22 +32.09% 
Credit Investor Angst:
  • North American Investment Grade CDS Index 79.19 +.57%
  • European Financial Sector CDS Index 140.53 -.03%
  • Western Europe Sovereign Debt CDS Index 84.50 -1.16%
  • Emerging Market CDS Index 323.59 +.40%
  • 2-Year Swap Spread 18.25 -1.25 bps
  • TED Spread 24.75 +.5 bp
  • 3-Month EUR/USD Cross-Currency Basis Swap -9.75 -.25 bp
Economic Gauges:
  • 3-Month T-Bill Yield .02% unch.
  • Yield Curve 242.0 -2 bps
  • China Import Iron Ore Spot $138.70/Metric Tonne +.07%
  • Citi US Economic Surprise Index 23.30 -5.2 points
  • Citi Emerging Markets Economic Surprise Index -24.40 +.2 point
  • 10-Year TIPS Spread 2.16 +2 bps
Overseas Futures:
  • Nikkei Futures: Indicating -66 open in Japan
  • DAX Futures: Indicating -23 open in Germany
Portfolio: 
  • Slightly Higher: On gains in my biotech sector longs and emerging markets shorts
  • Disclosed Trades: Added to my (IWM)/(QQQ) hedges and to my (EEM) short
  • Market Exposure: Moved to 50% Net Long

1 comment:

theyenguy said...

World Stocks, VT, traded unchanged.

The chart of the EUR/JPY shows a slight trade lower to 131.61 with Eurozone Stocks, EZU, trading lower, as Italy, EWI, and the European Financials, EUFN, traded lower, on a lower Euro, FXE, and a higher Yen, FXY.

Regional Banks, KRE, and Dow Telecom, IST, traded lower.

The BRICS, EEB, traded lower, on lower Russia, RSX, India, INP, Brazil, EWZ, and China Industrials, CHII.

Pharmaceuticals, PJP, and Biotechnology, IBB, traded higher.

Briefing.com reported light trading volume has persisted throughout the day, which, in turn, has made for a very quiet trading day. Similar to the S&P, the Treasury market is little changed with the benchmark 10-yr yield off one basis point at 2.81