Monday, February 05, 2018

Stocks Plunging into Final Hour on Fed Rate-Hike Fears, Technical Selling, Yen Strength, Homebuilding/Bank Sector Weakness

Broad Equity Market Tone:
  • Advance/Decline Line: Substantially Lower
  • Sector Performance: Every Sector Declining
  • Volume: Heavy
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 24.60 +42.1%
  • Euro/Yen Carry Return Index 141.87 -.79%
  • Emerging Markets Currency Volatility(VXY) 8.62 +.7%
  • S&P 500 Implied Correlation 44.20 +7.46%
  • ISE Sentiment Index 62.0 -23.46%
  • Total Put/Call .86 -2.27%
  • NYSE Arms 1.70 +17.0%
Credit Investor Angst:
  • North American Investment Grade CDS Index 53.04 +6.46%
  • America Energy Sector High-Yield CDS Index 371.0 +3.29%
  • European Financial Sector CDS Index 45.31 +3.06%
  • Italian/German 10Y Yld Spread 129.0 +.25 basis point
  • Asia Pacific Sovereign Debt CDS Index 11.84 +.59%
  • Emerging Market CDS Index 121.49 +2.71%
  • iBoxx Offshore RMB China Corporate High Yield Index 147.17 -.02%
  • 2-Year Swap Spread 23.75 +1.75 basis points
  • TED Spread 30.75 unch.
  • 3-Month EUR/USD Cross-Currency Basis Swap -29.0 +1.0 basis point
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 75.67 -.34%
  • 3-Month T-Bill Yield 1.49% +1.0 basis point
  • Yield Curve 71.25 +1.75 basis points
  • China Iron Ore Spot 74.06 USD/Metric Tonne +.12%
  • Citi US Economic Surprise Index 50.0 +5.5 points
  • Citi Eurozone Economic Surprise Index 36.90 +2.8 basis points
  • Citi Emerging Markets Economic Surprise Index 1.8 +.8 basis point
  • 10-Year TIPS Spread 2.12 -2.0 basis points
  • 100.0% chance of Fed rate hike at May 2 meeting, 100.0% chance at June 13 meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating -488 open in Japan 
  • China A50 Futures: Indicating -104 open in China
  • DAX Futures: Indicating -132 open in Germany
Portfolio: 
  • Slightly Lower: On losses in my medical/retail/tech/biotech sector longs
  • Disclosed Trades: Added to my (IWM)/(QQQ) hedges and to my emerging market shorts
  • Market Exposure: Moved to 25% Net Long

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