Tuesday, June 27, 2017

Stocks Lower into Final Hour on More Hawkish Central Bank Commentary, Diminishing Healthcare/Tax Reform Hopes, Cyber-Terrorism Fears, Biotech/Tech Sector Weakness

Broad Equity Market Tone:
  • Advance/Decline Line: Lower
  • Sector Performance: Mixed
  • Volume: Around Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 10.85 +9.6%
  • Euro/Yen Carry Return Index 132.81 +1.73%
  • Emerging Markets Currency Volatility(VXY) 7.41 +.41%
  • S&P 500 Implied Correlation 33.90 +2.4%
  • ISE Sentiment Index 86.0 -11.3%
  • Total Put/Call .74 -6.33%
  • NYSE Arms .79 -1.56%
Credit Investor Angst:
  • North American Investment Grade CDS Index 61.32 +2.46%
  • America Energy Sector High-Yield CDS Index 473.0 -1.81%
  • European Financial Sector CDS Index 52.65 +2.76%
  • Western Europe Sovereign Debt CDS Index 6.02 -15.2%
  • Asia Pacific Sovereign Debt CDS Index 19.09 -.86%
  • Emerging Market CDS Index 199.61 +1.71%
  • iBoxx Offshore RMB China Corporate High Yield Index 139.57 +.06%
  • 2-Year Swap Spread 20.0 -1.5 basis points
  • TED Spread 29.75 -4.5 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap -01.5 +.75 basis point
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 72.89 -.05%
  • 3-Month T-Bill Yield 1.0% +4.0 basis points
  • Yield Curve 83.0 +3.0 basis points
  • China Import Iron Ore Spot $59.70/Metric Tonne +5.2%
  • Citi US Economic Surprise Index -77.50 +1.0 point
  • Citi Eurozone Economic Surprise Index 9.20 +2.6 points
  • Citi Emerging Markets Economic Surprise Index 10.40 +.4 point
  • 10-Year TIPS Spread 1.72 unch.
  • 26.1% chance of Fed rate hike at Sept. 20 meeting, 27.6% chance at Nov. 1 meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating -25 open in Japan 
  • China A50 Futures: Indicating -29 open in China
  • DAX Futures: Indicating -57 open in Germany
Portfolio: 
  • Lower: On losses in my tech/medical/biotech sector longs 
  • Disclosed Trades: Added to my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 50% Net Long

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