Monday, January 25, 2016

Stocks Falling into Final Hour on Rising European/Emerging Markets/US High-Yield Debt Angst, Oil Decline, Earnings Outlook Worries, Energy/Financial Sector Weakness

Broad Equity Market Tone:
  • Advance/Decline Line: Substantially Lower
  • Sector Performance: Almost Every Sector Declining
  • Volume: Around Average
  • Market Leading Stocks: Underperforming
Equity Investor Angst:
  • Volatility(VIX) 23.14 +3.58%
  • Euro/Yen Carry Return Index 134.18 +.12%
  • Emerging Markets Currency Volatility(VXY) 11.80 -2.16%
  • S&P 500 Implied Correlation 63.73 -.06%
  • ISE Sentiment Index 97.0 +22.78%
  • Total Put/Call .95 -13.64%
  • NYSE Arms 1.14 -20.39
Credit Investor Angst:
  • North American Investment Grade CDS Index 105.77 +1.38%
  • America Energy Sector High-Yield CDS Index 1,789.0 -1.18%
  • European Financial Sector CDS Index 89.90 +1.96%
  • Western Europe Sovereign Debt CDS Index 20.47 +6.42%
  • Asia Pacific Sovereign Debt CDS Index 76.08 +1.55%
  • Emerging Market CDS Index 383.81 +1.87%
  • iBoxx Offshore RMB China Corporate High Yield Index 122.03 -.03%
  • 2-Year Swap Spread 5.75 -.5 basis point
  • TED Spread 32.5 -1.75 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap -23.25 unch.
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 67.02 -.46%
  • 3-Month T-Bill Yield .28% -1.0 basis point
  • Yield Curve 115.0 -4.0 basis points
  • China Import Iron Ore Spot $41.57/Metric Tonne -1.49%
  • Citi US Economic Surprise Index -40.7 +3.1 points
  • Citi Eurozone Economic Surprise Index -14.0 -8.2 points
  • Citi Emerging Markets Economic Surprise Index -9.1 -1.1 points
  • 10-Year TIPS Spread 1.34% unch.
  • 25.0% chance of Fed rate hike at March 16 meeting, 30.7% chance at April 27 meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating -185 open in Japan 
  • China A50 Futures: Indicating -97 open in China
  • DAX Futures: Indicating -25 open in Germany
Portfolio: 
  • Slightly Lower: On losses in my tech/biotech/medical/retail sector longs
  • Disclosed Trades: Added to my (IWM)/(QQQ) hedges and to my (EEM) short
  • Market Exposure: Moved to 25% Net Long

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