Wednesday, August 23, 2017

Stocks Modestly Lower into Final Hour on Tax Reform Worries, Less Economic Optimism, Yen Strength, Medical/Transport Sector Weakness

Broad Equity Market Tone:
  • Advance/Decline Line: Around Even
  • Sector Performance: Mixed
  • Volume: Below Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 11.97 +5.46%
  • Euro/Yen Carry Return Index 134.40 unch.
  • Emerging Markets Currency Volatility(VXY) 7.22 -.82%
  • S&P 500 Implied Correlation 35.46 +7.98%
  • ISE Sentiment Index 69.0 -39.5%
  • Total Put/Call .93 -8.82%
  • NYSE Arms .66 -22.82%
Credit Investor Angst:
  • North American Investment Grade CDS Index 60.97 -.25%
  • America Energy Sector High-Yield CDS Index 470.0 -.50%
  • European Financial Sector CDS Index 56.77 +2.45%
  • Western Europe Sovereign Debt CDS Index 5.75 -.43%
  • Asia Pacific Sovereign Debt CDS Index 20.99 -.40%
  • Emerging Market CDS Index 189.36 -.16%
  • iBoxx Offshore RMB China Corporate High Yield Index 141.08 +.02%
  • 2-Year Swap Spread 24.75 -.75 basis point
  • TED Spread 31.0 -.75 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -25.75 +.25 basis point
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 74.06 +.22%
  • 3-Month T-Bill Yield 1.0% unch.
  • Yield Curve 86.0 -3.0 basis points
  • China Import Iron Ore Spot $79.65/Metric Tonne n/a
  • Citi US Economic Surprise Index -37.20 -9.8 points
  • Citi Eurozone Economic Surprise Index 18.50 +11.9 points
  • Citi Emerging Markets Economic Surprise Index 17.60 -2.0 basis points
  • 10-Year TIPS Spread 1.76 -1.0 basis point
  • 15.6% chance of Fed rate hike at Nov. 1 meeting, 39.1% chance at Dec. 13 meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating -60 open in Japan 
  • China A50 Futures: Indicating +9 open in China
  • DAX Futures: Indicating +7 open in Germany
Portfolio: 
  • Slightly Lower: On losses in my medical sector longs 
  • Disclosed Trades: None
  • Market Exposure: 100% Net Long

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