Thursday, November 21, 2019

Stocks Slightly Lower into Final Hour on China Trade Deal Concerns, Profit-Taking, Technical Selling, Airline/Defense Sector Weakness

 Broad Equity Market Tone:
  • Advance/Decline Line: Modestly Lower
  • Sector Performance: Mixed
  • Volume: Above Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 13.2 +3.1%
  • Euro/Yen Carry Return Index 124.76 -.08%
  • Emerging Markets Currency Volatility(VXY) 7.21 -.55%
  • S&P 500 Implied Correlation 43.91 +3.37%
  • ISE Sentiment Index 61.0 -24
  • Total Put/Call 1.19 +17.8%
  • NYSE Arms .49 -57.8%
Credit Investor Angst:
  • North American Investment Grade CDS Index 52.85 +.36%
  • America Energy Sector High-Yield CDS Index 585.0 +1.49%
  • European Financial Sector CDS Index 58.95 -1.37%
  • Italian/German 10Y Yld Spread 150.25 -4.5 basis points
  • Asia Ex-Japan Investment Grade CDS Index 65.86 +.77%
  • Emerging Market CDS Index 203.95 -.91%
  • iBoxx Offshore RMB China Corporate High Yield Index 167.75 +.01%
  • 2-Year Swap Spread -1.75 -.75 basis point
  • TED Spread 34.0 unch.
  • 3-Month EUR/USD Cross-Currency Basis Swap -11.75 -2.5 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 65.51 -.18%
  • 3-Month T-Bill Yield 1.56% +1.0 basis point
  • Yield Curve .17 unch.
  • China Iron Ore Spot 85.13 USD/Metric Tonne +3.05%
  • Citi US Economic Surprise Index -2.0 -.9 basis point
  • Citi Eurozone Economic Surprise Index -15.50 +.4 point
  • Citi Emerging Markets Economic Surprise Index -27.0 -.1 basis point
  • 10-Year TIPS Spread 1.64 +2.0 basis points
  • 19.3% chance of Fed rate cut at Jan. 29th meeting, 31.1% chance of cut at March 18th meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +77 open in Japan 
  • China A50 Futures: Indicating +19 open in China
  • DAX Futures: Indicating +34 open in Germany
Portfolio:
  • Slightly Higher: On gains in my biotech/industrial sector longs and index hedges
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 100% Net Long

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