Friday, August 26, 2016

Stocks Reversing Lower into Afternoon on Fed Rate-Hike Fears, Global Growth Worries, Technical Selling, Homebuilding/Healthcare Sector Weakness

Broad Equity Market Tone:
  • Advance/Decline Line: Modestly Lower
  • Sector Performance: Mixed
  • Volume: Below Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 13.92 +2.13%
  • Euro/Yen Carry Return Index 118.89 +.33%
  • Emerging Markets Currency Volatility(VXY) 10.03 unch.
  • S&P 500 Implied Correlation 46.74 +2.52%
  • ISE Sentiment Index 93.0 +4.49%
  • Total Put/Call 1.02 -10.53%
  • NYSE Arms .67 -27.81
Credit Investor Angst:
  • North American Investment Grade CDS Index 71.18 -.33%
  • America Energy Sector High-Yield CDS Index 689 -.42%
  • European Financial Sector CDS Index 89.25 -1.92%
  • Western Europe Sovereign Debt CDS Index 24.69 +.24%
  • Asia Pacific Sovereign Debt CDS Index 40.27 -.70%
  • Emerging Market CDS Index 241.88 -.89%
  • iBoxx Offshore RMB China Corporate High Yield Index 131.69 +.04%
  • 2-Year Swap Spread 22.25 -.25 basis point
  • TED Spread 51.0 -.5 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -39.25 -.5 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 72.79 -.20%
  • 3-Month T-Bill Yield .32% +1.0 basis point
  • Yield Curve 77.0 -2.0 basis points
  • China Import Iron Ore Spot $59.13/Metric Tonne -3.76%
  • Citi US Economic Surprise Index 11.1 -1.1 points
  • Citi Eurozone Economic Surprise Index 21.2 unch.
  • Citi Emerging Markets Economic Surprise Index -3.6 -1.0 point
  • 10-Year TIPS Spread 1.51% +1.0 basis point
  • 43.3% chance of Fed rate hike at Nov. 2 meeting, 62.3% chance at Dec. 14 meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +154 open in Japan 
  • China A50 Futures: Indicating +3 open in China
  • DAX Futures: Indicating -77 open in Germany
Portfolio: 
  • Higher: On gains in my biotech/medical sector longs, index hedges and emerging markets shorts
  • Disclosed Trades: None
  • Market Exposure: 25% Net Long

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