Tuesday, May 17, 2016

Stocks Falling into Afternoon on Fed Rate Hike Fears, Global Growth Worries, Emerging Markets Debt Angst, Retail/REIT Sector Weakness

Broad Equity Market Tone:
  • Advance/Decline Line: Lower
  • Sector Performance: Most Sectors Declining
  • Volume: Slightly Below Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 15.44 +5.18%
  • Euro/Yen Carry Return Index 129.0 +.03%
  • Emerging Markets Currency Volatility(VXY) 10.80 -1.10%
  • S&P 500 Implied Correlation 55.39 +3.75%
  • ISE Sentiment Index 57.0 -13.64%
  • Total Put/Call .92 +19.48%
  • NYSE Arms .69 +6.34
Credit Investor Angst:
  • North American Investment Grade CDS Index 82.02 +.58%
  • America Energy Sector High-Yield CDS Index 935.0 +3.62%
  • European Financial Sector CDS Index 99.0 unch.
  • Western Europe Sovereign Debt CDS Index 25.58 -.41%
  • Asia Pacific Sovereign Debt CDS Index 52.82 -1.06%
  • Emerging Market CDS Index 296.43 +1.98%
  • iBoxx Offshore RMB China Corporate High Yield Index 127.98 +.07%
  • 2-Year Swap Spread 13.0 +.25 basis point
  • TED Spread 36.25 unch.
  • 3-Month EUR/USD Cross-Currency Basis Swap -23.25 -.5 basis point
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 71.61 +.20%
  • 3-Month T-Bill Yield .27% unch.
  • Yield Curve 94.0 -3.0 basis points
  • China Import Iron Ore Spot $55.78/Metric Tonne +2.65%
  • Citi US Economic Surprise Index -30.60 -5.6 points
  • Citi Eurozone Economic Surprise Index -4.2 +1.0 points
  • Citi Emerging Markets Economic Surprise Index -2.9 -.5 point
  • 10-Year TIPS Spread 1.65% +2.0 basis points
  • 31.1% chance of Fed rate hike at July 27 meeting, 47.7% chance at September 21 meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +9 open in Japan 
  • China A50 Futures: Indicating -77 open in China
  • DAX Futures: Indicating -51 open in Germany
Portfolio: 
  • Slightly Higher: On gains in my index hedges and emerging markets shorts
  • Disclosed Trades: Added to my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 25% Net Long

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