Wednesday, April 05, 2017

Stocks Reversing Lower into Final Hour on Hawkish FOMC Commentary, Diminished Tax Reform Hopes, Profit-Taking, Biotech/Retail Sector Weakness

Broad Equity Market Tone:
  • Advance/Decline Line: Modestly Lower
  • Sector Performance: Mixed
  • Volume: Around Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 11.47 -2.71%
  • Euro/Yen Carry Return Index 123.47 +.06%
  • Emerging Markets Currency Volatility(VXY) 9.10 +.66%
  • S&P 500 Implied Correlation 42.44 -2.91%
  • ISE Sentiment Index 68.0 -21.84%
  • Total Put/Call .88 -22.81%
  • NYSE Arms 1.11 -28.16%
Credit Investor Angst:
  • North American Investment Grade CDS Index 66.25 -.88%
  • America Energy Sector High-Yield CDS Index 350.0 -1.67%
  • European Financial Sector CDS Index 89.97 -2.20%
  • Western Europe Sovereign Debt CDS Index 12.83 +2.97%
  • Asia Pacific Sovereign Debt CDS Index 20.89 -.17%
  • Emerging Market CDS Index 210.48 -.86%
  • iBoxx Offshore RMB China Corporate High Yield Index 136.40 -.13%
  • 2-Year Swap Spread 33.5 -3..25 basis points
  • TED Spread 35.25 -1.5 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap -22.25 +2.0 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 71.88 -.14%
  • 3-Month T-Bill Yield .80% +2.0 basis points
  • Yield Curve 110.0 -1.0 basis point
  • China Import Iron Ore Spot $81.54/Metric Tonne +2.63%
  • Citi US Economic Surprise Index 45.70 +2.0 points
  • Citi Eurozone Economic Surprise Index 37.60 -2.4 points
  • Citi Emerging Markets Economic Surprise Index 37.60 +2.3 points
  • 10-Year TIPS Spread 1.97 +1.0 basis point
  • 60.0% chance of Fed rate hike at June 14 meeting, 63.5% chance at July 26 meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +18 open in Japan 
  • China A50 Futures: Indicating +47 open in China
  • DAX Futures: Indicating -3 open in Germany
Portfolio: 
  • Slightly Lower: On losses in my biotech/retail sector longs
  • Disclosed Trades: Added to my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 50% Net Long

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