Friday, May 17, 2019

Stocks Slightly Lower into Afternoon on China Trade Deal Concerns, Earnings Worries, Technical Selling, Commodity/Gaming Sector Weakness

 Broad Equity Market Tone:
  • Advance/Decline Line: Lower
  • Sector Performance: Mixed
  • Volume: Below Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 15.06 -1.5%
  • Euro/Yen Carry Return Index 127.61 +.08%
  • Emerging Markets Currency Volatility(VXY) 9.11 +2.82%
  • S&P 500 Implied Correlation 38.08 -6.14%
  • ISE Sentiment Index 66.0 +1.54%
  • Total Put/Call 1.10 -6.56%
  • NYSE Arms .99 -11.65%
Credit Investor Angst:
  • North American Investment Grade CDS Index 62.50 -.18%
  • America Energy Sector High-Yield CDS Index 522.0 -.44%
  • European Financial Sector CDS Index 81.44 +2.66%
  • Italian/German 10Y Yld Spread 276.5 -8.0 basis points
  • Asia Ex-Japan Investment Grade CDS Index 71.51 +1.31%
  • Emerging Market CDS Index 206.55 +1.44%
  • iBoxx Offshore RMB China Corporate High Yield Index 162.84 +.12%
  • 2-Year Swap Spread 6.75 -.75 basis point
  • TED Spread 14.75 +2.0 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap -16.5 unch.
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 65.68 -.39%
  • 3-Month T-Bill Yield 2.38% -1.0 basis point
  • Yield Curve 19.25 -1.5 basis points
  • China Iron Ore Spot 98.0 USD/Metric Tonne +4.25%
  • Citi US Economic Surprise Index -31.10 +12.4 points
  • Citi Eurozone Economic Surprise Index -14.60 +4.9 points
  • Citi Emerging Markets Economic Surprise Index -32.90 -3.6 points
  • 10-Year TIPS Spread 1.83 -2.0 basis points
  • 24.0% chance of Fed rate cut at July 31st meeting, 50.0% chance of cut at Sept. 18th meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +45 open in Japan 
  • China A50 Futures: Indicating -42 open in China
  • DAX Futures: Indicating -5 open in Germany
Portfolio:
  • Slightly Lower: On losses in my industrial/medical/tech sector longs
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 100% Net Long

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