Tuesday, March 08, 2016

Stocks Falling into Final Hour on China Bubble Bursting Fears, Oil Decline, Yen Strength, Commodity/Road & Rail 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) 18.22 +5.01%
  • Euro/Yen Carry Return Index 129.49 -.90%
  • Emerging Markets Currency Volatility(VXY) 11.60 -.09%
  • S&P 500 Implied Correlation 60.43 +4.26%
  • ISE Sentiment Index 94.0 +34.3%
  • Total Put/Call .91 +8.33%
  • NYSE Arms 1.51 +82.80% 
Credit Investor Angst:
  • North American Investment Grade CDS Index 97.48 +3.91%
  • America Energy Sector High-Yield CDS Index 1,406.0 -9.32%
  • European Financial Sector CDS Index 101.75 +3.65%
  • Western Europe Sovereign Debt CDS Index 31.43 +2.48%
  • Asia Pacific Sovereign Debt CDS Index 70.89 +3.08%
  • Emerging Market CDS Index 342.89 +.93%
  • iBoxx Offshore RMB China Corporate High Yield Index 124.73 +.11%
  • 2-Year Swap Spread 4.5 +.25 basis point
  • TED Spread 33.25 -3.25 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap -27.0 +1.75 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 69.94 -.5%
  • 3-Month T-Bill Yield .29% +2.0 basis points
  • Yield Curve 96.0 -4.0 basis points
  • China Import Iron Ore Spot $63.63/Metric Tonne -.17%
  • Citi US Economic Surprise Index -13.0 -1.2 points
  • Citi Eurozone Economic Surprise Index -53.20 +8.6 points
  • Citi Emerging Markets Economic Surprise Index -16.80 -5.8 points
  • 10-Year TIPS Spread 1.47% -3.0 basis points
  • 19.2% chance of Fed rate hike at April 27 meeting, 43.4% chance at June 15 meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating -178 open in Japan 
  • China A50 Futures: Indicating -137 open in China
  • DAX Futures: Indicating -6 open in Germany
Portfolio: 
  • Slightly Lower: On losses in my biotech/medical sector longs
  • Disclosed Trades: Added to my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 25% Net Long

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