Tuesday, July 05, 2016

Stocks Falling into Afternoon on Rising European/Emerging Markets/US High-Yield Debt Angst, Oil Decline, Yen Strength, Financial/Energy 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) 16.56 +12.1%
  • Euro/Yen Carry Return Index 117.48 -1.72%
  • Emerging Markets Currency Volatility(VXY) 10.12 +.10%
  • S&P 500 Implied Correlation 56.67 +4.56%
  • ISE Sentiment Index 51.0 -54.46%
  • Total Put/Call 1.19 +29.35%
  • NYSE Arms 1.42 +64.15
Credit Investor Angst:
  • North American Investment Grade CDS Index 79.22 +3.56%
  • America Energy Sector High-Yield CDS Index 756.0 -.29%
  • European Financial Sector CDS Index 115.0 +4.03%
  • Western Europe Sovereign Debt CDS Index 31.81 +2.58%
  • Asia Pacific Sovereign Debt CDS Index 53.51 +1.19%
  • Emerging Market CDS Index 274.57 +2.64%
  • iBoxx Offshore RMB China Corporate High Yield Index 130.39 +.31%
  • 2-Year Swap Spread 17.25 +1.25 basis points
  • TED Spread 40.0 +1.25 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap -40.25 -1.75 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 72.04 -.76%
  • 3-Month T-Bill Yield .24% -1.0 basis point
  • Yield Curve 81.0 -5.0 basis points
  • China Import Iron Ore Spot $55.93/Metric Tonne -.52%
  • Citi US Economic Surprise Index -13.4 +.9 point
  • Citi Eurozone Economic Surprise Index 15.9 +6.7 points
  • Citi Emerging Markets Economic Surprise Index -13.90 -.7 point
  • 10-Year TIPS Spread 1.42% -5.0 basis points
  • 2.0% chance of Fed rate hike at Sept. 21 meeting, 2.0% chance at Nov. 2 meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating -204 open in Japan 
  • China A50 Futures: Indicating -152 open in China
  • DAX Futures: Indicating -55 open in Germany
Portfolio: 
  • Slightly Lower: On losses in my retail/tech/biotech 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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