Stocks Lower into Final Hour on Tax Reform Worries, Yen Strength, Profit-Taking, Retail/Healthcare Provider Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Mixed
  

• Volume: Above Average

• Market Leading Stocks: Performing In Line
  

Equity Investor Angst:

• Volatility(VIX) 10.4 +6.4%

• Euro/Yen Carry Return Index 137.29 -.23%

• Emerging Markets Currency Volatility(VXY) 8.13 -1.22%

• S&P 500 Implied Correlation 15.8 +4.9%

• ISE Sentiment Index 101.0 -31.3%
  

• Total Put/Call .89 +3.49%

• NYSE Arms 1.02 -6.5%

Credit Investor Angst:

• North American Investment Grade CDS Index 53.01 -.04%
  

• America Energy Sector High-Yield CDS Index 393.0 -.77%

• European Financial Sector CDS Index 52.89 -2.02%

• Western Europe Sovereign Debt CDS Index 4.26 -10.5%

• Asia Pacific Sovereign Debt CDS Index 15.26 -1.93%

• Emerging Market CDS Index 174.44 +.19%
  

• iBoxx Offshore RMB China Corporate High Yield Index 144.79 +.02%

• 2-Year Swap Spread 22.5 -.25 basis point

• TED Spread 28.75 +.25 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -41.75 +.25 basis point

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 72.54 -.04%
• 3-Month T-Bill Yield 1.10% +1.0 basis point
  

• Yield Curve 79.0 -4.0 basis points

• China Import Iron Ore Spot $58.75/Metric Tonne -2.21%

• Citi US Economic Surprise Index 40.50 +2.3 points

• Citi Eurozone Economic Surprise Index 66.40 +6.9 basis points

• Citi Emerging Markets Economic Surprise Index 20.70 -.6 point

• 10-Year TIPS Spread 1.88 -2.0 basis points
  
• 84.9% chance of Fed rate hike at Dec. 13 meeting, 85.5% chance at Jan. 31 meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating -89 open in Japan 
• China A50 Futures: Indicating -29 open in China

• DAX Futures: Indicating -8 open in Germany

Portfolio: 

• Slightly Higher: On gains in my tech/biotech sector longs and emerging markets shorts

• Disclosed Trades: Added to my (IWM)/(QQQ) hedges

• Market Exposure: Moved to 75% Net Long