Friday, March 24, 2017

Stocks Reversing Lower into Final Hour on Healthcare/Tax Reform Worries, Yen Strength, Technical Selling, Financial/Retail Sector Weakness

Broad Equity Market Tone:
  • Advance/Decline Line: Modestly Higher
  • Sector Performance: Mixed
  • Volume: Light
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 13.40 +2.13%
  • Euro/Yen Carry Return Index 125.05 +.13%
  • Emerging Markets Currency Volatility(VXY) 9.11 -.65%
  • S&P 500 Implied Correlation 49.01 +1.03%
  • ISE Sentiment Index 104.0 -2.0%
  • Total Put/Call 1.24 +9.73%
  • NYSE Arms 1.49 -8.55%
Credit Investor Angst:
  • North American Investment Grade CDS Index 67.93 -.77%
  • America Energy Sector High-Yield CDS Index 408.0 +.15%
  • European Financial Sector CDS Index 89.0 -1.07%
  • Western Europe Sovereign Debt CDS Index 12.31 +1.40%
  • Asia Pacific Sovereign Debt CDS Index 20.95 -1.60%
  • Emerging Market CDS Index 212.82 -1.70%
  • iBoxx Offshore RMB China Corporate High Yield Index 136.22 -.05%
  • 2-Year Swap Spread 37.0 +.5 basis point
  • TED Spread 39.0 -.5 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -24.5 +3.0 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 72.47 +.36%
  • 3-Month T-Bill Yield .76% unch.
  • Yield Curve 115.0 -2.0 basis points
  • China Import Iron Ore Spot $85.06/Metric Tonne -1.51%
  • Citi US Economic Surprise Index 54.10 -1.6 points
  • Citi Eurozone Economic Surprise Index 69.80 +28.1 points
  • Citi Emerging Markets Economic Surprise Index 45.0 -1.7 points
  • 10-Year TIPS Spread 1.98 +1.0 basis point
  • 50.2% chance of Fed rate hike at June 14 meeting, 57.2% chance at July 26 meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating -167 open in Japan 
  • China A50 Futures: Indicating +29 open in China
  • DAX Futures: Indicating +13 open in Germany
Portfolio: 
  • Slightly Higher: On gains in my medical/tech sector longs  and index hedges
  • Disclosed Trades: Added to my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 25% Net Long

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