Wednesday, September 12, 2018

Stocks Slightly Lower into Final Hour on Earnings Concerns, Technical Selling, Profit-Taking, Financial/Tech Sector Weakness

 Broad Equity Market Tone:
  • Advance/Decline Line: Lower
  • Sector Performance: Mixed
  • Volume: Around Average
  • Market Leading Stocks: Underperforming
Equity Investor Angst:
  • Volatility(VIX) 13.4 +1.3%
  • Euro/Yen Carry Return Index 134.57 -.11%
  • Emerging Markets Currency Volatility(VXY) 12.42 -2.59%
  • S&P 500 Implied Correlation 26.36 -4.5%
  • ISE Sentiment Index 143.0 +15.3%
  • Total Put/Call .79 -9.2%
  • NYSE Arms .67 -23.4%
Credit Investor Angst:
  • North American Investment Grade CDS Index 57.49 -.68%
  • America Energy Sector High-Yield CDS Index 408.0 -1.12%
  • European Financial Sector CDS Index 70.02 +.60%
  • Italian/German 10Y Yld Spread 254.0 +2.75 basis points
  • Asia Pacific Sovereign Debt CDS Index 12.62 -1.10%
  • Emerging Market CDS Index 221.29 -3.44%
  • iBoxx Offshore RMB China Corporate High Yield Index 151.56 +.03%
  • 2-Year Swap Spread 18.0 -.25 basis point
  • TED Spread 19.50 +.5 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -11.75 unch.
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 12.42 -2.59%
  • 3-Month T-Bill Yield 2.14% -1.0 basis point
  • Yield Curve 21.0 -2.25 basis points
  • China Iron Ore Spot 68.0 USD/Metric Tonne +.97%
  • Citi US Economic Surprise Index -4.2 +.4 point
  • Citi Eurozone Economic Surprise Index -12.5 -5.8 points
  • Citi Emerging Markets Economic Surprise Index -5.10 -1.2 points
  • 10-Year TIPS Spread 2.12 unch.
  • 97.5% chance of Fed rate hike at Nov. 8th meeting, 99.4% chance at Dec. 19th meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating -110 open in Japan 
  • China A50 Futures: Indicating +172 open in China
  • DAX Futures: Indicating -28 open in Germany
Portfolio: 
  • Slightly Lower: On losses in my tech/retail sector longs and emerging market shorts
  • Disclosed Trades: Added to my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 50% Net Long

No comments: