Friday, August 10, 2018

Stocks Falling into Final Hour on Surging European/Emerging Markets Debt Angst, Emerging Markets Currency Weakness, Profit-Taking, Financial/Tech Sector Weakness

 Broad Equity Market Tone:
  • Advance/Decline Line: Lower
  • Sector Performance: Almost Every Sector Declining
  • Volume: Below Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 13.55 +15.03%
  • Euro/Yen Carry Return Index 131.23 -1.52%
  • Emerging Markets Currency Volatility(VXY) 12.16 +12.4%
  • S&P 500 Implied Correlation 32.64 +7.05%
  • ISE Sentiment Index 88.0 -34.43%
  • Total Put/Call 1.20 +39.5%
  • NYSE Arms 1.56 +25.2%
Credit Investor Angst:
  • North American Investment Grade CDS Index 61.53 +4.61%
  • America Energy Sector High-Yield CDS Index 371.0 +1.78%
  • European Financial Sector CDS Index 85.99 +7.84%
  • Italian/German 10Y Yld Spread 267.75 +15.5 basis points
  • Asia Pacific Sovereign Debt CDS Index 10.50 +3.3%
  • Emerging Market CDS Index 198.79 +8.77%
  • iBoxx Offshore RMB China Corporate High Yield Index 150.82 +.20%
  • 2-Year Swap Spread 19.25 -.25 basis point
  • TED Spread 30.0 unch.
  • 3-Month EUR/USD Cross-Currency Basis Swap -11.75 -4.75 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 66.40 -2.73%
  • 3-Month T-Bill Yield 2.04% unch.
  • Yield Curve 26.0 -2.25 basis points
  • China Iron Ore Spot 69.40 USD/Metric Tonne +.43%
  • Citi US Economic Surprise Index -11.90 +.1 point
  • Citi Eurozone Economic Surprise Index -32.90 +1.4 points
  • Citi Emerging Markets Economic Surprise Index -2.70 -.7 point
  • 10-Year TIPS Spread 2.10 -1.0 basis point
  • 88.0% chance of Fed rate hike at Nov. 8th meeting, 95.2% chance at Dec. 19th meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating -218 open in Japan 
  • China A50 Futures: Indicating -98 open in China
  • DAX Futures: Indicating -27 open in Germany
Portfolio: 
  • Slightly Higher: On gains in my retail sector longs and emerging market shorts
  • Disclosed Trades: Added to my (IWM)/(QQQ) hedges and to my emerging market shorts
  • Market Exposure: Moved to 25% Net Long

No comments: