Tuesday, November 07, 2017

Stocks Slightly Lower into Afternoon on Tax Reform Worries, Profit-Taking, Technical Selling, Financial/Retail 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) 10.0 +6.38%
  • Euro/Yen Carry Return Index 137.49 -.1%
  • Emerging Markets Currency Volatility(VXY) 8.11 +.62%
  • S&P 500 Implied Correlation 16.52 +15.9%
  • ISE Sentiment Index 74.0 -9.76%
  • Total Put/Call .88 -3.30%
  • NYSE Arms 1.16 +40.46%
Credit Investor Angst:
  • North American Investment Grade CDS Index 53.91 +1.57%
  • America Energy Sector High-Yield CDS Index 361.0 -.87%
  • European Financial Sector CDS Index 51.28 +1.22%
  • Western Europe Sovereign Debt CDS Index 3.94 -1.01%
  • Asia Pacific Sovereign Debt CDS Index 15.50 +1.91%
  • Emerging Market CDS Index 187.50 +4.02%
  • iBoxx Offshore RMB China Corporate High Yield Index 145.13 +.05%
  • 2-Year Swap Spread 20.50 -.5 basis point
  • TED Spread 19.50 -1.5 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap -44.0 -1.75 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 72.23 -.58%
  • 3-Month T-Bill Yield 1.20% +2.0 basis points
  • Yield Curve 68.25 -2.25 basis points
  • China Import Iron Ore Spot $62.66/Metric Tonne -1.1%
  • Citi US Economic Surprise Index 40.50 +.7 point
  • Citi Eurozone Economic Surprise Index 60.80 -1.0 basis point
  • Citi Emerging Markets Economic Surprise Index 16.40 -.6 point
  • 10-Year TIPS Spread 1.88 +1.0 basis point
  • 100.0% chance of Fed rate hike at Jan. 31 meeting, 100.0% chance at March 21 meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating -71 open in Japan 
  • China A50 Futures: Indicating +42 open in China
  • DAX Futures: Indicating +1 open in Germany
Portfolio: 
  • Slightly Lower: On losses in my tech/biotech/retail sector longs
  • Disclosed Trades: Added to my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 75% Net Long

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