Stocks Slightly Lower into Final Hour on Earnings Concerns, Profit-Taking, Technical Selling, Homebuilding/Biotech Sector Weakness
Broad Equity Market Tone:
- Advance/Decline Line: Modestly Lower
- Sector Performance: Mixed
- Market Leading Stocks: Performing In Line
Equity Investor Angst:
- Volatility(VIX) 13.32 +2.15%
- Euro/Yen Carry Return Index 140.08 +.36%
- Emerging Markets Currency Volatility(VXY) 8.45 +.84%
- S&P 500 Implied Correlation 36.43 +1.0%
- ISE Sentiment Index 124.0 +53.0%
- Total Put/Call .80 +17.65%
Credit Investor Angst:
- North American Investment Grade CDS Index 72.38 +1.46%
- European Financial Sector CDS Index 122.08 +1.36%
- Western Europe Sovereign Debt CDS Index 70.99 -.46%
- Emerging Market CDS Index 260.05 +1.14%
- 2-Year Swap Spread 13.25 unch.
- TED Spread 21.25 -.25 basis point
- 3-Month EUR/USD Cross-Currency Basis Swap -6.5 unch.
Economic Gauges:
- 3-Month T-Bill Yield .03% unch.
- Yield Curve 229.0 +2 basis points
- China Import Iron Ore Spot $134.40/Metric Tonne unch.
- Citi US Economic Surprise Index 19.60 -3.6 points
- Citi Emerging Markets Economic Surprise Index -10.30 -.7 point
- 10-Year TIPS Spread 2.19 +1 basis point
Overseas Futures:
- Nikkei Futures: Indicating +56 open in Japan
- DAX Futures: Indicating -3 open in Germany
Portfolio:
- Slightly Higher: On gains in my tech sector longs
- Market Exposure: 75% Net Long
1 comment:
On Monday, October 21, 2013, trading manifested as deflationary, as in a turn lower from market highs.
Zero Hedge reports Yen Drops, Nikkei Pops On Japan's Worst Trade Deficit On Record. In overnight trading, In Japan, The Nikkei, NKY, traded 0.9% higher, as the Japanese Yen, FXY, came under pressure and traded lower on slowing export growth and on reaffirmed central bank commitment to provide ultra loose monetary. Roger Bootle of The Telegraph reports It’s Not Yet The End Of The World As We Know It, But Watch Japan’s Debt Grow. Japan has managed to muddle through, but it now looks as though it is close to a tipping point. And Reuters reports Tokyo Steel, Wary Of Imports Threat, Keeps November Prices Mostly Unchanged.
The National Bank of Greece, NBG, rose strongly. Eurozone Stocks, EZU, traded unchanged at their rally highs, while the European Financials, EUFN, traded slightly lower, while the EUR/JPY carry trade, EUR/JPY, traded slightly higher at 134.33, as the Euro, FXE, closed unchanged at 135.33, and the Yen, FXY, closed lower at 99.52.
The Nikkei, NKY, closed slightly higher on the day, while World Stocks, VT, US Stocks, VTI, Asia Excluding Japan, EPP, Emerging Market Stocks, EEM, and the BRICS, EEB, all traded unchanged.
Solar Energy Stocks, TAN, Gold Mining Stocks, GDX, and Silver Mining Stocks, SIL, traded higher. Biotechnology, IBB, Pharmaceuticals, PJP, traded lower. Egypt, EGPT, and Argentina, ARGT, traded higher. Thailand, THD, Indonesia, IDX, and the Philippines, EPHE, traded lower.
The US Dollar, $USD, UUP, traded unchanged, as Major World Currencies, DBV, traded unchanged, and the Emerging Market Currencies, CEW, traded slightly lower.
Aggregate Credit, AGG, traded slightly lower, as the Steepner ETF, STPP, traded slightly higher, as the Interest Rate on the US Ten Year Note, ^TNX, traded slightly higher to close at 2.61% as Michael Pinto writes Safehaven De-Crowning The US Dollar While most are now celebrating the end of government gridlock (however ephemeral it may be), the truth is few understand the consequences of our addictions. The real problems of government largess, money printing, artificial interest rates, asset bubbles and debt have not been addressed at all. Rather, Washington has merely agreed to perpetually extend its lines of credit and to have the central bank purchase most of that new debt. Instead of placating the fears of our foreign creditors we have cemented into their minds that the U.S. dollar and bond market cannot be safe repositories of their savings.
Commodities, DBC, hit resistance at 26.26, last Friday, that is October 18, 2013, and closed slightly lower today at 26.20. Oil, USO, traded sharply lower, as Bespoke Investment Group, reports Crude Oil Inventories Rise More Than Expected. Small Cap Energy, PSCE, an Energy Production, XOP, manifested bearishly at the top of their ascending wedge chart patterns.
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