Monday, March 06, 2017

Stocks Modestly Lower into Final Hour on Tax Reform Worries, Rate Hike Fears, Earnings Outlook Concerns, Metals&Mining/Airline Sector Weakness

Broad Equity Market Tone:
  • Advance/Decline Line: Substantially Lower
  • Sector Performance: Most Sectors Declining
  • Volume: Below Average
  • Market Leading Stocks: Underperforming
Equity Investor Angst:
  • Volatility(VIX) 11.27 +2.83%
  • Euro/Yen Carry Return Index 125.91 -.46%
  • Emerging Markets Currency Volatility(VXY) 9.53 -2.26%
  • S&P 500 Implied Correlation 44.93 -.11%
  • ISE Sentiment Index 60.0 -31.03%
  • Total Put/Call .86 -9.47%
  • NYSE Arms 1.29 +62.57%
Credit Investor Angst:
  • North American Investment Grade CDS Index 60.50 +.73%
  • America Energy Sector High-Yield CDS Index 359.0 +1.69%
  • European Financial Sector CDS Index 87.30 +1.68%
  • Western Europe Sovereign Debt CDS Index 20.0 -5.55%
  • Asia Pacific Sovereign Debt CDS Index 27.40 +3.63%
  • Emerging Market CDS Index 207.92 +.47%
  • iBoxx Offshore RMB China Corporate High Yield Index 135.58 +.17%
  • 2-Year Swap Spread 33.25 -.75 basis point
  • TED Spread 39.50 +4.0 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap -24.5 -1.75 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 71.12 -.09%
  • 3-Month T-Bill Yield .72% +2.0 basis points
  • Yield Curve 119.0 unch.
  • China Import Iron Ore Spot $89.73/Metric Tonne -1.74%
  • Citi US Economic Surprise Index 38.20 +1.4 points
  • Citi Eurozone Economic Surprise Index 68.0 -2.0 points
  • Citi Emerging Markets Economic Surprise Index 54.80 +1.5 points
  • 10-Year TIPS Spread 2.03 -1.0 basis point
  • 98.2% chance of Fed rate hike at May 3 meeting, 98.9% chance at June 14 meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating -3 open in Japan 
  • China A50 Futures: Indicating +3 open in China
  • DAX Futures: Indicating +1 open in Germany
Portfolio: 
  • Slightly Lower: On losses in my in my retail/biotech sector longs 
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 100% Net Long

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