Wednesday, November 30, 2016

Stocks Reversing Lower into Final Hour on Rising Long-Term Rates, Technical Selling, Profit-Taking, Biotech/Homebuilding Sector Weakness

Broad Equity Market Tone:
  • Advance/Decline Line: Lower
  • Sector Performance: Mixed
  • Volume: Above Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 13.36 +3.57%
  • Euro/Yen Carry Return Index 126.42 +1.11%
  • Emerging Markets Currency Volatility(VXY) 10.76 -.92%
  • S&P 500 Implied Correlation 53.79 -4.31%
  • ISE Sentiment Index 85.0 +7.89%
  • Total Put/Call .90 -5.26%
  • NYSE Arms .42 -65.81%
Credit Investor Angst:
  • North American Investment Grade CDS Index 72.76 -1.07%
  • America Energy Sector High-Yield CDS Index 562.0 -4.04%
  • European Financial Sector CDS Index 107.50 -.94%
  • Western Europe Sovereign Debt CDS Index 23.48 +.54%
  • Asia Pacific Sovereign Debt CDS Index 41.44 -4.81%
  • Emerging Market CDS Index 265.31 -1.51%
  • iBoxx Offshore RMB China Corporate High Yield Index 132.98 +.01%
  • 2-Year Swap Spread 20.75 +1.0 basis point
  • TED Spread 44.75 -1.0 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -59.0 -2.75 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 69.36 +.05%
  • 3-Month T-Bill Yield .48% +1.0 basis point
  • Yield Curve 125.0 +4.0 basis points
  • China Import Iron Ore Spot $72.08/Metric Tonne -6.75%
  • Citi US Economic Surprise Index 17.80 +1.0 point
  • Citi Eurozone Economic Surprise Index 58.90 -4.7 points
  • Citi Emerging Markets Economic Surprise Index -4.4 +.3 point
  • 10-Year TIPS Spread 1.97% +7.0 basis points
  • 100.0% chance of Fed rate hike at Feb. 1 meeting, 100.0% chance at March 15 meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +297 open in Japan 
  • China A50 Futures: Indicating +30 open in China
  • DAX Futures: Indicating -29 open in Germany
Portfolio: 
  • Lower: On losses in my medical/biotech/tech/retail sector longs
  • Disclosed Trades: Added to my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 25% Net Long

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