Thursday, July 27, 2017

Stocks Mostly Lower into Final Hour on Profit-Taking, Technical Selling, Earnings Disappointments, Transport/Biotech Sector Weakness

Broad Equity Market Tone:
  • Advance/Decline Line: Substantially Lower
  • Sector Performance: Most Sectors Declining
  • Volume: Above Average
  • Market Leading Stocks: Underperforming
Equity Investor Angst:
  • Volatility(VIX) 10.76 +12.4%
  • Euro/Yen Carry Return Index 135.35 -.57%
  • Emerging Markets Currency Volatility(VXY) 7.50 +.4%
  • S&P 500 Implied Correlation 28.70 +2.1%
  • ISE Sentiment Index 84.0 +25.4%
  • Total Put/Call .94 +27.0%
  • NYSE Arms .88 -33.3%
Credit Investor Angst:
  • North American Investment Grade CDS Index 57.29 +1.78%
  • America Energy Sector High-Yield CDS Index 434.0 +.49%
  • European Financial Sector CDS Index 49.58 -1.1%
  • Western Europe Sovereign Debt CDS Index 4.29 -12.99%
  • Asia Pacific Sovereign Debt CDS Index 19.86 -2.46%
  • Emerging Market CDS Index 193.14 +.69%
  • iBoxx Offshore RMB China Corporate High Yield Index 140.48 +.07%
  • 2-Year Swap Spread 24.5 +.75 basis point
  • TED Spread 21.5 +2.25 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap -29.0 -2.0 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 73.85 -.18%
  • 3-Month T-Bill Yield 1.10% -2.0 basis points
  • Yield Curve 95.0 +2.0 basis points
  • China Import Iron Ore Spot $70.20/Metric Tonne -.33%
  • Citi US Economic Surprise Index -43.80 +.6 points
  • Citi Eurozone Economic Surprise Index 16.10 +2.5 points
  • Citi Emerging Markets Economic Surprise Index 16.90 +1.3 basis points
  • 10-Year TIPS Spread 1.82 +2.0 basis points
  • 17.7% chance of Fed rate hike at Nov. 1 meeting, 47.3% chance at Dec. 13 meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating -59 open in Japan 
  • China A50 Futures: Indicating +20 open in China
  • DAX Futures: Indicating -39 open in Germany
Portfolio: 
  • Lower: On losses in my tech/biotech/medical sector longs 
  • Disclosed Trades: Added to my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 75% Net Long

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