Wednesday, August 02, 2017

Stocks Slightly Lower into Final Hour on Trade War Concerns, Earnings Outlooks, Technical Selling, Hospital/Alt Energy Sector Weakness

Broad Equity Market Tone:
  • Advance/Decline Line: Substantially Lower
  • Sector Performance: Mixed
  • Volume: Around Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 10.0 -.5%
  • Euro/Yen Carry Return Index 136.84 +.68%
  • Emerging Markets Currency Volatility(VXY) 7.49 +.13%
  • S&P 500 Implied Correlation 28.01 +9.2%
  • ISE Sentiment Index n/a
  • Total Put/Call .94 +9.3%
  • NYSE Arms .94 -25.6%
Credit Investor Angst:
  • North American Investment Grade CDS Index 56.19 -.58%
  • America Energy Sector High-Yield CDS Index 436.0 +.07%
  • European Financial Sector CDS Index 50.04 -.06%
  • Western Europe Sovereign Debt CDS Index 5.49 +7.54%
  • Asia Pacific Sovereign Debt CDS Index 18.71 -.58%
  • Emerging Market CDS Index 188.20 -.93%
  • iBoxx Offshore RMB China Corporate High Yield Index 140.58 +.01%
  • 2-Year Swap Spread 24.25 +.25 basis point
  • TED Spread 23.25 -1.0 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -26.75 +.35 basis point
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 73.98 +.11%
  • 3-Month T-Bill Yield 1.07% unch.
  • Yield Curve 90.0 -1.0 basis point
  • China Import Iron Ore Spot $72.30/Metric Tonne -1.71%
  • Citi US Economic Surprise Index -45.60 -.8 point
  • Citi Eurozone Economic Surprise Index 15.90 -.2 basis point
  • Citi Emerging Markets Economic Surprise Index 18.80 -1.5 basis points
  • 10-Year TIPS Spread 1.79 unch.
  • 19.5% chance of Fed rate hike at Nov. 1 meeting, 46.7% chance at Dec. 13 meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating -5 open in Japan 
  • China A50 Futures: Indicating +32 open in China
  • DAX Futures: Indicating -4 open in Germany
Portfolio: 
  • Lower: On losses in my tech/retail/medical sector longs 
  • Disclosed Trades: Added to my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 75% Net Long

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