Stocks Slightly Lower into Final Hour on China Trade Deal Concerns, Profit-Taking, Oil Decline, Energy/Telecom Sector Weakness

 Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Mixed
  

• Volume: Heavy

• Market Leading Stocks: Performing In Line

Equity Investor Angst:

• Volatility(VIX) 13.0 -1.0%

• Euro/Yen Carry Return Index 125.18 -.25%

• Emerging Markets Currency Volatility(VXY) 7.35 +.14%

• S&P 500 Implied Correlation 29.68 +1.4%

• ISE Sentiment Index 89.0 -23
  

• Total Put/Call .96 +12.9%

• NYSE Arms 1.52 +82.4%

Credit Investor Angst:

• North American Investment Grade CDS Index 51.82 +.16%
  

• America Energy Sector High-Yield CDS Index 506.0 -8.4%

• European Financial Sector CDS Index 58.09 +4.51%

• Italian/German 10Y Yld Spread 133.5 -.25 basis point
  

• Asia Ex-Japan Investment Grade CDS Index 63.94 +.67%
  

• Emerging Market CDS Index 193.75 +.67%
  

• iBoxx Offshore RMB China Corporate High Yield Index 167.36 +.01%

• 2-Year Swap Spread 4.0 -.25 basis point

• TED Spread 36.0 -1.75 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -12.0 -1.25 basis points

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 66.17 -.31%
• 3-Month T-Bill Yield 1.55% +1.0 basis point

• Yield Curve .23 +2.0 basis points

• China Iron Ore Spot 80.52 USD/Metric Tonne +.35%

• Citi US Economic Surprise Index 7.10 -.4 point

• Citi Eurozone Economic Surprise Index -27.70 +8.8 points

• Citi Emerging Markets Economic Surprise Index -23.70 +1.8 basis points

• 10-Year TIPS Spread 1.68 unch.
• 29.2% chance of Fed rate cut at Jan. 29th meeting, 41.3% chance of cut at March 18th meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating +7 open in Japan 
• China A50 Futures: Indicating +6 open in China

• DAX Futures: Indicating -11 open in Germany

Portfolio:

• Slightly Higher: On gains in my medical sector longs and index hedges

• Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges

• Market Exposure: Moved to 100% Net Long