Thursday, December 29, 2016

Stocks Slightly Lower into Afternoon on Yen Strength, Technical Selling, Profit-Taking, Financial/Tech Sector Weakness

Broad Equity Market Tone:
  • Advance/Decline Line: Lower
  • Sector Performance: Mixed
  • Volume: Light
  • Market Leading Stocks: Underperforming
Equity Investor Angst:
  • Volatility(VIX) 13.59 +4.94%
  • Euro/Yen Carry Return Index 127.60 +.09%
  • Emerging Markets Currency Volatility(VXY) 11.32 -.61%
  • S&P 500 Implied Correlation 49.78 +.95%
  • ISE Sentiment Index 92.0 -13.21%
  • Total Put/Call .91 +1.11%
  • NYSE Arms 1.12 -21.03%
Credit Investor Angst:
  • North American Investment Grade CDS Index 68.03 +1.08%
  • America Energy Sector High-Yield CDS Index 454.0 -.03%
  • European Financial Sector CDS Index 95.02 +.93%
  • Western Europe Sovereign Debt CDS Index 20.50 +.59%
  • Asia Pacific Sovereign Debt CDS Index 37.75 +.21%
  • Emerging Market CDS Index 241.06 -.46%
  • iBoxx Offshore RMB China Corporate High Yield Index 133.19 +.01%
  • 2-Year Swap Spread 25.0 +1.5 basis points
  • TED Spread 53.0 +5.5 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap -54.0 +23.75 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 69.83 +.45%
  • 3-Month T-Bill Yield .45% -6.0 basis points
  • Yield Curve 126.0 +1.0 basis point
  • China Import Iron Ore Spot $80.43/Metric Tonne -.31%
  • Citi US Economic Surprise Index 23.90 -.4 point
  • Citi Eurozone Economic Surprise Index 54.10 +.4 basis points
  • Citi Emerging Markets Economic Surprise Index 17.90 +7.3 points
  • 10-Year TIPS Spread 1.96% -3.0 basis points
  • 31.3% chance of Fed rate hike at March 15 meeting, 43.5% chance at May 3 meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating -105 open in Japan 
  • China A50 Futures: Indicating +38 open in China
  • DAX Futures: Indicating -12 open in Germany
Portfolio: 
  • Slightly Lower: On losses in my retail/biotech sector longs and emerging markets shorts
  • Disclosed Trades: None
  • Market Exposure: 25% Net Long

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