Friday, November 10, 2017

Stocks Slightly Lower into Afternoon on Tax Reform Worries,Rising Long-Term Rates, Profit-Taking, Medical Equipment/Commodity Sector Weakness

Broad Equity Market Tone:
  • Advance/Decline Line: Modestly Higher
  • Sector Performance: Mixed
  • Volume: Above Average
  • Market Leading Stocks: Outperforming
Equity Investor Angst:
  • Volatility(VIX) 11.07 +5.3%
  • Euro/Yen Carry Return Index 138.03 +.25%
  • Emerging Markets Currency Volatility(VXY) 8.13 +.87%
  • S&P 500 Implied Correlation 18.21 +34.89%
  • ISE Sentiment Index 69.0 +30.2%
  • Total Put/Call 1.19 +8.2%
  • NYSE Arms .82 +18.73%
Credit Investor Angst:
  • North American Investment Grade CDS Index 56.09 +.64%
  • America Energy Sector High-Yield CDS Index 363.0 +.11%
  • European Financial Sector CDS Index 52.20 +.47%
  • Western Europe Sovereign Debt CDS Index 4.05 -.49%
  • Asia Pacific Sovereign Debt CDS Index 16.07 -.06%
  • Emerging Market CDS Index 192.50 +.83%
  • iBoxx Offshore RMB China Corporate High Yield Index 145.22 +.01%
  • 2-Year Swap Spread 20.25 unch.
  • TED Spread 18.75 +.25 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -47.75 -3.0 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 72.41 -.13%
  • 3-Month T-Bill Yield 1.22% -1.0 basis point
  • Yield Curve 74.5 +5.0 basis points
  • China Import Iron Ore Spot $62.60/Metric Tonne +.45%
  • Citi US Economic Surprise Index 38.50 -1.5 points
  • Citi Eurozone Economic Surprise Index 58.90 -2.5 basis points
  • Citi Emerging Markets Economic Surprise Index 14.10 -.8 point
  • 10-Year TIPS Spread 1.91 unch.
  • 100.0% chance of Fed rate hike at Jan. 31 meeting, 100.0% chance at March 21 meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating -171 open in Japan 
  • China A50 Futures: Indicating +42 open in China
  • DAX Futures: Indicating +2 open in Germany
Portfolio: 
  • Higher: On gains in my tech/retail sector longs
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 100% Net Long

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