Wednesday, December 20, 2017

Stocks Slightly Lower into Final Hour on Profit-Taking, Rising Long-Term Rates, Technical Selling, Utility/REIT Sector Weakness

Broad Equity Market Tone:
  • Advance/Decline Line: Modestly Higher
  • Sector Performance: Mixed
  • Volume: Below Average
  • Market Leading Stocks: Outperforming
Equity Investor Angst:
  • Volatility(VIX) 9.74 -2.89%
  • Euro/Yen Carry Return Index 140.38 +.77%
  • Emerging Markets Currency Volatility(VXY) 7.65 +1.59%
  • S&P 500 Implied Correlation 36.47 -.87%
  • ISE Sentiment Index 122.0 +32.61%
  • Total Put/Call .71 -20.2%
  • NYSE Arms .78 -21.08%
Credit Investor Angst:
  • North American Investment Grade CDS Index 49.25 -1.1%
  • America Energy Sector High-Yield CDS Index 376.0 -.6%
  • European Financial Sector CDS Index 45.44 +.13%
  • Western Europe Sovereign Debt CDS Index 3.96 unch.
  • Asia Pacific Sovereign Debt CDS Index 13.28 -.08%
  • Emerging Market CDS Index 120.50 -1.05%
  • iBoxx Offshore RMB China Corporate High Yield Index 145.81 -.1%
  • 2-Year Swap Spread 21.25 unch.
  • TED Spread 24.5 -.25 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -56.0 +3.75 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 73.79 +.15%
  • 3-Month T-Bill Yield 1.38% +2.0 basis points
  • Yield Curve 63.5 +2.25 basis points
  • China Iron Ore Spot 510.0 CNY/100 Metric Tonnes -.2%
  • Citi US Economic Surprise Index 77.40 -.6 point
  • Citi Eurozone Economic Surprise Index 53.80 -5.3 basis points
  • Citi Emerging Markets Economic Surprise Index -.1 +.2 basis point
  • 10-Year TIPS Spread 1.93 unch.
  • 69.0% chance of Fed rate hike at March 21 meeting, 71.0% chance at May 2 meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating -13 open in Japan 
  • China A50 Futures: Indicating -20 open in China
  • DAX Futures: Indicating -3 open in Germany
Portfolio: 
  • Slightly Higher: On gains in my retail/biotech sector longs
  • Disclosed Trades: None
  • Market Exposure: 100% Net Long

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