Tuesday, September 05, 2017

Stocks Falling into Final Hour on Geopolitical Concerns, Hurricane Irma Worries, Yen Strength, Financial/Insurance Sector Weakness

Broad Equity Market Tone:
  • Advance/Decline Line: Substantially Lower
  • Sector Performance: Almost Every Sector Declining
  • Volume: Around Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 13.12 +29.8%
  • Euro/Yen Carry Return Index 135.11 -.76%
  • Emerging Markets Currency Volatility(VXY) 7.75 +.91%
  • S&P 500 Implied Correlation 36.43 +45.7%
  • ISE Sentiment Index 72.0 -11.11%
  • Total Put/Call 1.15 +36.9%
  • NYSE Arms .69 +1.65%
Credit Investor Angst:
  • North American Investment Grade CDS Index 57.50 +2.34%
  • America Energy Sector High-Yield CDS Index 455.0 -2.32%
  • European Financial Sector CDS Index 51.53 -2.11%
  • Western Europe Sovereign Debt CDS Index 5.24 -5.84%
  • Asia Pacific Sovereign Debt CDS Index 19.08 +3.64%
  • Emerging Market CDS Index 178.39 +.60%
  • iBoxx Offshore RMB China Corporate High Yield Index 141.47 +.05%
  • 2-Year Swap Spread 22.25 +1.25 basis points
  • TED Spread 32.5 +1.25 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap -24.5 +.25 basis point
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 74.70 +.16%
  • 3-Month T-Bill Yield 1.0% unch.
  • Yield Curve 78.0 -3.0 basis points
  • China Import Iron Ore Spot $78.39/Metric Tonne +.68%
  • Citi US Economic Surprise Index -19.30 -1.1 points
  • Citi Eurozone Economic Surprise Index 23.60 -2.2 points
  • Citi Emerging Markets Economic Surprise Index 23.10 +4.3 basis points
  • 10-Year TIPS Spread 1.78 -1.0 basis point
  • 13.8% chance of Fed rate hike at Nov. 1 meeting, 36.2% chance at Dec. 13 meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating -85 open in Japan 
  • China A50 Futures: Indicating -14 open in China
  • DAX Futures: Indicating -49 open in Germany
Portfolio: 
  • Lower: On losses in my tech/biotech sector longs 
  • Disclosed Trades: None
  • Market Exposure: 75% Net Long

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