Tuesday, January 17, 2017

Stocks Falling into Final Hour on Brexit Worries, Protectionism Fears, Yen Strength, Financial/Biotech Sector Weakness

Broad Equity Market Tone:
  • Advance/Decline Line: Substantially Lower
  • Sector Performance: Most Sectors Declining
  • Volume: Slightly Below Average
  • Market Leading Stocks: Underperforming
Equity Investor Angst:
  • Volatility(VIX) 12.12 +7.93%
  • Euro/Yen Carry Return Index 126.01 -.34%
  • Emerging Markets Currency Volatility(VXY) 10.95 -.90%
  • S&P 500 Implied Correlation 48.04 +1.09%
  • ISE Sentiment Index 75.0 -20.21%
  • Total Put/Call .93 +2.2%
  • NYSE Arms .95 -31.63%
Credit Investor Angst:
  • North American Investment Grade CDS Index 66.71 +1.31%
  • America Energy Sector High-Yield CDS Index 433.0 -.06%
  • European Financial Sector CDS Index 87.06 -.37%
  • Western Europe Sovereign Debt CDS Index 20.71 +.88%
  • Asia Pacific Sovereign Debt CDS Index 34.41 -.55%
  • Emerging Market CDS Index 233.95 -1.02%
  • iBoxx Offshore RMB China Corporate High Yield Index 132.70 -.11%
  • 2-Year Swap Spread 29.5 +.25 basis point
  • TED Spread 50.0 -1.0 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -42.0 -1.0 basis point
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 70.32 +.82%
  • 3-Month T-Bill Yield .52% unch.
  • Yield Curve 117.0 -3.0 basis points
  • China Import Iron Ore Spot $81.55/Metric Tonne -2.51%
  • Citi US Economic Surprise Index 40.70 +2.7 points
  • Citi Eurozone Economic Surprise Index 69.50 -5.3 basis points
  • Citi Emerging Markets Economic Surprise Index 38.30 +.7 point
  • 10-Year TIPS Spread 2.0 unch.
  • 27.8% chance of Fed rate hike at March 15 meeting, 39.0% chance at May 3 meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating -58 open in Japan 
  • China A50 Futures: Indicating +25 open in China
  • DAX Futures: Indicating +2 open in Germany
Portfolio: 
  • Lower: On losses in my in my tech/biotech sector longs 
  • Disclosed Trades: Added to my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 25% Net Long

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