Wednesday, May 22, 2019

Stocks Lower into Final Hour on China Trade Deal Concerns, Global Growth Worries, Oil Decline, Transport/Energy Sector Weakness

 Broad Equity Market Tone:
  • Advance/Decline Line: Lower
  • Sector Performance: Mixed
  • Volume: Below Average
  • Market Leading Stocks: Underperforming
Equity Investor Angst:
  • Volatility(VIX) 14.5 -3.0%
  • Euro/Yen Carry Return Index 127.87 -.2%
  • Emerging Markets Currency Volatility(VXY) 8.67 -2.69%
  • S&P 500 Implied Correlation 37.01 -.4%
  • ISE Sentiment Index 54.0 -52.51%
  • Total Put/Call .90 -10.0%
  • NYSE Arms 1.26 +75.0%
Credit Investor Angst:
  • North American Investment Grade CDS Index 63.25 +.01%
  • America Energy Sector High-Yield CDS Index 535.0 -.09%
  • European Financial Sector CDS Index 84.74 +3.38%
  • Italian/German 10Y Yld Spread 271.75 +1.0 basis point
  • Asia Ex-Japan Investment Grade CDS Index 71.86 +.92%
  • Emerging Market CDS Index 204.08 +2.04%
  • iBoxx Offshore RMB China Corporate High Yield Index 162.92 +.02%
  • 2-Year Swap Spread 5.75 -.5 basis point
  • TED Spread 16.0 -1.25 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap -17.25 -.25 basis point
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 65.70 -.12%
  • 3-Month T-Bill Yield 2.37% unch.
  • Yield Curve 16.0 -1.0 basis point
  • China Iron Ore Spot 101.08 USD/Metric Tonne +.16%
  • Citi US Economic Surprise Index -29.0 +.7 point
  • Citi Eurozone Economic Surprise Index -16.30 +.5 point
  • Citi Emerging Markets Economic Surprise Index -33.10 unch.
  • 10-Year TIPS Spread 1.80 -4.0 basis points
  • 17.6% chance of Fed rate cut at July 31st meeting, 38.3% chance of cut at Sept. 18th meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating -23 open in Japan 
  • China A50 Futures: Indicating -79 open in China
  • DAX Futures: Indicating -12 open in Germany
Portfolio:
  • Slightly Lower: On losses in my retail/industrial sector longs
  • Disclosed Trades: None
  • Market Exposure: 75% Net Long

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