Wednesday, March 23, 2016

Stocks Falling into Afternoon on European/Emerging Markets/US High-Yield Debt Angst, Oil Decline, Earnings Outlook Worries, Commodity/Biotech Sector Weakness

Broad Equity Market Tone:
  • Advance/Decline Line: Substantially Lower
  • Sector Performance: Almost Every Sector Declining
  • Volume: Below Average
  • Market Leading Stocks: Underperforming
Equity Investor Angst:
  • Volatility(VIX) 14.5 +2.54%
  • Euro/Yen Carry Return Index 131.55 -.13%
  • Emerging Markets Currency Volatility(VXY) 11.42 unch.
  • S&P 500 Implied Correlation 57.04 +.25%
  • ISE Sentiment Index 49.0 -12.5%
  • Total Put/Call .99 -8.33%
  • NYSE Arms 2.12 +65.42% 
Credit Investor Angst:
  • North American Investment Grade CDS Index 81.46 +.8%
  • America Energy Sector High-Yield CDS Index 1,351.0 -1.17%
  • European Financial Sector CDS Index 90.80 +2.65%
  • Western Europe Sovereign Debt CDS Index 27.39 +4.66%
  • Asia Pacific Sovereign Debt CDS Index 57.5 -.16%
  • Emerging Market CDS Index 288.05 +3.43%
  • iBoxx Offshore RMB China Corporate High Yield Index 126.25 +.28%
  • 2-Year Swap Spread 9.75 +.75 basis point
  • TED Spread 32.50 -.5 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -20.25 +1.0 basis point
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 71.41 -.6%
  • 3-Month T-Bill Yield .30% unch.
  • Yield Curve 103.0 -2.0 basis points
  • China Import Iron Ore Spot $57.87/Metric Tonne -.84%
  • Citi US Economic Surprise Index -3.70 +.4 point
  • Citi Eurozone Economic Surprise Index -32.60 +.2 point
  • Citi Emerging Markets Economic Surprise Index -16.80 +1.7 points
  • 10-Year TIPS Spread 1.60% -4.0 basis points
  • 41.1% chance of Fed rate hike at June 15 meeting, 50.5% chance at July 27 meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating -100 open in Japan 
  • China A50 Futures: Indicating -38 open in China
  • DAX Futures: Indicating +18 open in Germany
Portfolio: 
  • Slightly Higher: On gains in my index hedges and emerging market shorts
  • Disclosed Trades: None
  • Market Exposure: 25% Net Long

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