Monday, January 27, 2020

Stocks Sharply Lower into Final Hour on Coronavirus Fears, Global Growth Worries, Technical Selling, Tech/Commodity 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) 17.1 +17.6%
  • Euro/Yen Carry Return Index 124.56 -.39%
  • Emerging Markets Currency Volatility(VXY) 6.64 +8.9%
  • S&P 500 Implied Correlation 43.0 +4.0%
  • ISE Sentiment Index 76.0 +9
  • Total Put/Call 1.01 -7.0%
  • NYSE Arms 1.82 -22.2%
Credit Investor Angst:
  • North American Investment Grade CDS Index 48.78 +4.37%
  • America Energy Sector High-Yield CDS Index 628.0 +3.16%
  • European Financial Sector CDS Index 54.75 +1.87%
  • Italian/German 10Y Yld Spread 142.25 -14.5 basis points
  • Asia Ex-Japan Investment Grade CDS Index 58.0 +8.0%
  • Emerging Market CDS Index 194.50 +.64%
  • iBoxx Offshore RMB China Corporate High Yield Index 169.75 +.06%
  • 2-Year Swap Spread 4.75 -1.0 basis point
  • TED Spread 27.0 unch.
  • 3-Month EUR/USD Cross-Currency Basis Swap -5.75 -1.0 basis point
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 65.66 -.52%
  • 3-Month T-Bill Yield 1.54% +1.0 basis point
  • Yield Curve .19 -4.0 basis points
  • China Iron Ore Spot 84.85 USD/Metric Tonne -5.76%
  • Citi US Economic Surprise Index 4.8 -5.2 points
  • Citi Eurozone Economic Surprise Index 42.80 -8.0 points
  • Citi Emerging Markets Economic Surprise Index 12.6 +3.3 basis points
  • 10-Year TIPS Spread 1.63 -4.0 basis points
  • 12.2% chance of Fed rate cut at March 18th meeting, 21.5% chance of cut at April 29th meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating -203 open in Japan 
  • China A50 Futures: Indicating -744 open in China
  • DAX Futures: Indicating +31 open in Germany
Portfolio:
  • Slightly Higher: On gains in my index hedges and emerging market shorts
  • Disclosed Trades: None
  • Market Exposure: 25% Net Long

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