Stocks Slightly Lower into Final Hour on Debt Ceiling Worries, Emerging Markets Debt Angst, Technical Selling, REIT/Financial Sector Weakness
Broad Equity Market Tone:
- Advance/Decline Line: Higher
- Sector Performance: Mixed
- Market Leading Stocks: Performing In Line
Equity Investor Angst:
- Volatility(VIX) 13.90 -2.87%
- Euro/Yen Carry Return Index 138.80 -.19%
- Emerging Markets Currency Volatility(VXY) 9.77 +.51%
- S&P 500 Implied Correlation 48.17 -4.16%
- ISE Sentiment Index 98.0 +48.48%
- Total Put/Call .84 -15.15%
Credit Investor Angst:
- North American Investment Grade CDS Index 78.97 -1.94%
- European Financial Sector CDS Index 137.14 -1.92%
- Western Europe Sovereign Debt CDS Index 86.0 -1.15%
- Emerging Market CDS Index 273.72 +2.80%
- 2-Year Swap Spread 15.25 +.75 basis point
- TED Spread 24.0 -.5 basis point
- 3-Month EUR/USD Cross-Currency Basis Swap -3.75 +1.75 basis points
Economic Gauges:
- 3-Month T-Bill Yield .01% +1 basis point
- Yield Curve 232.0 -5 basis points
- China Import Iron Ore Spot $132.70/Metric Tonne +.23%
- Citi US Economic Surprise Index 46.20 +.3 point
- Citi Emerging Markets Economic Surprise Index 5.10 +1.5 points
- 10-Year TIPS Spread 2.20 -6 basis points
Overseas Futures:
- Nikkei Futures: Indicating +23 open in Japan
- DAX Futures: Indicating -1 open in Germany
Portfolio:
- Slightly Higher: On gains in my tech sector longs and emerging markets shorts
- Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges, then added them back
- Market Exposure: 50% Net Long
2 comments:
An inquiring mind asks why are you long in a down market?
Small Cap Energy, PSCE, and Energy Production, XOP, rose to new highs as Oil, USO, and Natural Gas, UNG, traded lower. Global Telecom, IST, rose to a new rally high with TI, and NOK, rising to new highs. Home Builders, ITB, US Infrastructure, PKB, Solar, TAN, and Internet Retail, FDN, bounced higher. Facebook, FB, Applied Material, AMAT, and Rite Aid, RAD, gapped open higher to new rally highs. ASML Holding, ASML, Delta Airlines, DAL, General Motors, GM, Safeway, SWY, and Illinois Tool Works, ITS, traded higher.
Small Cap Pure Value, RZV, such as FNGN, NCI, III, CEB, NEWT, EXAM, III, MCS, RICK, STAN, ACXN, MEG, LOV, AHC, ASGN, ADUS, NICK, ECPG, WRLD, FTK, ODC, STMP, FICO, BYD, MOVE, CKEC, MDCA, NXST, FCFS, and DXPE, rallied to a new high, manifesting a questioning harami, as Large Cap Value, JKE, continued to trade lower from their rally high.
Software, IGV, traded lower. Investment Banker, JPM, traded strongly lower. Real Estate, IYR, traded lower.
Gold Miners, GDX, and Silver Miners, SIL, traded lower on a lower price of Gold, GLD, yet their chart patterns suggest a bottoming out.
The Vice Stocks, traded by Fidelity Mutual Fund VICEX, traded lower, communicating an end to leveraged speculative investing.
The Off ETN, OFF, rose as the US Dollar, $USD, traded slightly higher, as Major World Currencies, DBV, and Emerging Market Currencies, CEW, traded lower, led so by the Australian Dollar, FXA. The EUR/JPY closed lower at 133.05.
Greece, GREK, traded higher as Holly Ellyatt of CNBC reports Temperature rises in Athens amid 48-hour strike.
Asia Excluding Japan, EPP, traded lower as Indonesia, IDX, IDXJ, Thailand, THD, the Philippines, EPHe, and Malaysia, EWM, traded lower. China Financials, CHIX, led China, YAO, and Far East Financials, FEFN, lower. India, INP, Chile, ECH, Peru, EPU, and Turkey, TUR, traded lower; all of which drove the Emerging Markets, EEM, and the BRICS, EEB, lower.
A see saw destruction of fiat wealth is underway, as Major World Currencies, DBV, Emerging Market Currencies, CEW, and World Stocks, VT, are trading lower, and Aggregate Credit, AGG, is trading higher, as the Interest Rate on the US Ten Year Note, ^TNX, traded lower to 2.65%, from its recent high of almost 3.0%
Gary - are you in Canada ? noticed the .ca
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