Tuesday, August 16, 2016

Stocks Lower into Final Hour on Profit-Taking, Technical Selling, Yen Strength, Defense/Biotech Sector Weakness

Broad Equity Market Tone:
  • Advance/Decline Line: Lower
  • Sector Performance: Most Sectors Declining
  • Volume: Below Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 12.73 +7.79%
  • Euro/Yen Carry Return Index 118.04 -.18%
  • Emerging Markets Currency Volatility(VXY) 9.85 -1.5%
  • S&P 500 Implied Correlation 47.07 +5.4%
  • ISE Sentiment Index 90.0 -13.46%
  • Total Put/Call .93 +20.78%
  • NYSE Arms .70 +6.99
Credit Investor Angst:
  • North American Investment Grade CDS Index 70.81 +.47%
  • America Energy Sector High-Yield CDS Index 705.0 -2.12%
  • European Financial Sector CDS Index 85.55 -1.67%
  • Western Europe Sovereign Debt CDS Index 23.90 +4.73%
  • Asia Pacific Sovereign Debt CDS Index 44.43 +1.83%
  • Emerging Market CDS Index 239.09 -.30%
  • iBoxx Offshore RMB China Corporate High Yield Index 131.80 +.02%
  • 2-Year Swap Spread 23.50 unch.
  • TED Spread 55.0 +.5 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -39.0 +1.0 basis point
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 73.96 +.32%
  • 3-Month T-Bill Yield .27% -1.0 basis point
  • Yield Curve 83.0 unch.
  • China Import Iron Ore Spot $62.03/Metric Tonne +3.01%
  • Citi US Economic Surprise Index 6.0 -1.7 points
  • Citi Eurozone Economic Surprise Index 27.6 -.8 point
  • Citi Emerging Markets Economic Surprise Index -.6 -.2 point
  • 10-Year TIPS Spread 1.45% -1.0 basis point
  • 25.3% chance of Fed rate hike at Nov. 2 meeting, 50.5% chance at Dec. 14 meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating -31 open in Japan 
  • China A50 Futures: Indicating +60 open in China
  • DAX Futures: Indicating -5 open in Germany
Portfolio: 
  • Slightly Lower: On losses in my medical/biotech/tech sector longs
  • Disclosed Trades: None
  • Market Exposure: 50% Net Long

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