Wednesday, October 02, 2019

Stocks Falling Substantially into Final Hour on Global Growth Fears, Brexit Concerns, Impeachment Talk, Financial/Retail Sector Weakness

 Broad Equity Market Tone:
  • Advance/Decline Line: Substantially Lower
  • Sector Performance: Almost Every Sector Declining
  • Volume: Above Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 20.4 +9.8%
  • Euro/Yen Carry Return Index 121.97 -.28%
  • Emerging Markets Currency Volatility(VXY) 8.12 unch.
  • S&P 500 Implied Correlation 49.40 +9.1%
  • ISE Sentiment Index 48.0 -23.3%
  • Total Put/Call 1.29 +17.3%
  • NYSE Arms 1.07 -45.9%
Credit Investor Angst:
  • North American Investment Grade CDS Index 62.76 +3.99%
  • America Energy Sector High-Yield CDS Index 514.0 +11.6%
  • European Financial Sector CDS Index 67.14 +4.78%
  • Italian/German 10Y Yld Spread 144.75 +2.5 basis points
  • Asia Ex-Japan Investment Grade CDS Index 78.28 +2.58%
  • Emerging Market CDS Index 213.44 +1.54%
  • iBoxx Offshore RMB China Corporate High Yield Index 166.05 +.03%
  • 2-Year Swap Spread 3.5 +1.0 basis points
  • TED Spread 32.5 +2.5 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap -29.25 +3.0 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 65.15 +.18%
  • 3-Month T-Bill Yield 1.75% -2.0 basis points
  • Yield Curve .11 +2.0 basis points
  • China Iron Ore Spot 88.10 USD/Metric Tonne -.74%
  • Citi US Economic Surprise Index 33.10 +2.9 points
  • Citi Eurozone Economic Surprise Index -69.30 +1.1 points
  • Citi Emerging Markets Economic Surprise Index -9.0 -1.5 points
  • 10-Year TIPS Spread 1.50 -2.0 basis points
  • 90.3% chance of Fed rate cut at Dec. 11th meeting, 95.5% chance of cut at Jan. 29th meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating -413 open in Japan 
  • China A50 Futures: Indicating -124 open in China
  • DAX Futures: Indicating +11 open in Germany
Portfolio:
  • Slightly Higher: On gains in my index hedges 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

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