Friday, June 24, 2016

Stocks Plunging into Afternoon on EU Disintegration Fears, Soaring European/Emerging Markets/US High-Yield Debt Angst, Commodity Decline, Financial/Tech Sector Weakness

Broad Equity Market Tone:
  • Advance/Decline Line: Substantially Lower
  • Sector Performance: Almost Every Sector Declining
  • Volume: Heavy
  • Market Leading Stocks: Underperforming
Equity Investor Angst:
  • Volatility(VIX) 23.12 +34.03%
  • Euro/Yen Carry Return Index 119.18 -5.92%
  • Emerging Markets Currency Volatility(VXY) 11.21 +13.46%
  • S&P 500 Implied Correlation 62.09 +13.58%
  • ISE Sentiment Index 44.0 -60.36%
  • Total Put/Call 1.21 -2.42%
  • NYSE Arms 1.62 +197.27
Credit Investor Angst:
  • North American Investment Grade CDS Index 86.28 +12.88%
  • America Energy Sector High-Yield CDS Index 745.0 +.71%
  • European Financial Sector CDS Index 125.70 +32.47%
  • Western Europe Sovereign Debt CDS Index 36.69 +31.64%
  • Asia Pacific Sovereign Debt CDS Index 54.31 +7.34%
  • Emerging Market CDS Index 300.78 +8.97%
  • iBoxx Offshore RMB China Corporate High Yield Index 129.91 -.06%
  • 2-Year Swap Spread 12.75 unch.
  • TED Spread 37.75 unch.
  • 3-Month EUR/USD Cross-Currency Basis Swap -43.50 -7.0 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 71.50 -2.28%
  • 3-Month T-Bill Yield .25% -3.0 basis points
  • Yield Curve 93.0 -2.0 basis points
  • China Import Iron Ore Spot $50.61/Metric Tonne -2.47%
  • Citi US Economic Surprise Index -23.8 -4.8 points
  • Citi Eurozone Economic Surprise Index 3.8 +4.1 points
  • Citi Emerging Markets Economic Surprise Index -5.9 -.1 point
  • 10-Year TIPS Spread 1.45% -9.0 basis points
  • 0.0% chance of Fed rate hike at Sept. 21 meeting, 0.0% chance at Nov. 2 meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +413 open in Japan 
  • China A50 Futures: Indicating +3 open in China
  • DAX Futures: Indicating -61 open in Germany
Portfolio: 
  • Slightly Lower: On losses in my biotech/medical/tech/retail sector longs 
  • Disclosed Trades: Added to my (IWM)/(QQQ) hedges and to my emerging markets shorts
  • Market Exposure: Moved to 25% Net Long

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