Wednesday, January 31, 2018

Stocks Reversing Slightly Lower into Final Hour on Profit-Taking, Fed Rate-Hike Worries, Technical Selling, Pharma/Gaming 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) 14.3 -3.5%
  • Euro/Yen Carry Return Index 141.07 +.36%
  • Emerging Markets Currency Volatility(VXY) 8.21 -.85%
  • S&P 500 Implied Correlation 34.8 -6.6%
  • ISE Sentiment Index 100.0 -5.66%
  • Total Put/Call .85 -10.5%
  • NYSE Arms 1.27 +7.44%
Credit Investor Angst:
  • North American Investment Grade CDS Index 47.34 +.55%
  • America Energy Sector High-Yield CDS Index 307.0 +1.07%
  • European Financial Sector CDS Index 42.25 -.54%
  • Italian/German 10Y Yld Spread 133.25 -1.5 basis points
  • Asia Pacific Sovereign Debt CDS Index 11.38 +1.56%
  • Emerging Market CDS Index 114.65 -1.98%
  • iBoxx Offshore RMB China Corporate High Yield Index 146.69 +.05%
  • 2-Year Swap Spread 18.75 -.5 basis point
  • TED Spread 32.25 -1.75 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap -30.75 -.25 basis point
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 76.22 +.32%
  • 3-Month T-Bill Yield 1.46% +4.0 basis points
  • Yield Curve 57.25 -2.75 basis points
  • China Iron Ore Spot 71.12 USD/Metric Tonne -.36%
  • Citi US Economic Surprise Index 38.50 +3.2 points
  • Citi Eurozone Economic Surprise Index 35.60 -8.1 basis points
  • Citi Emerging Markets Economic Surprise Index -1.5 -4.8 basis points
  • 10-Year TIPS Spread 2.11 +1.0 basis point
  • 100.0% chance of Fed rate hike at March 21 meeting, 100.0% chance at May 2 meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +132 open in Japan 
  • China A50 Futures: Indicating +25 open in China
  • DAX Futures: Indicating -11 open in Germany
Portfolio: 
  • Slightly Lower: On losses in my biotech/retail sector longs
  • Disclosed Trades: None
  • Market Exposure: 75% Net Long

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