Tuesday, March 03, 2020

Stocks Reversing Substantially Lower into Final Hour on Coronavirus Fears, Central Bank Action Disappointment, Global Growth Worries, Energy/Transport Sector Weakness

 Broad Equity Market Tone:
  • Advance/Decline Line: Substantially Lower
  • Sector Performance: Almost Every Sector Declining
  • Volume: Heavy
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 37.8 +12.9%
  • Euro/Yen Carry Return Index 124.3 -.7%
  • Emerging Markets Currency Volatility(VXY) 8.0 -3.5%
  • S&P 500 Implied Correlation 59.1 +9.2%
  • ISE Sentiment Index 111.0 +39
  • Total Put/Call .93 -30.0%
  • NYSE Arms 2.50 +117.3%
Credit Investor Angst:
  • North American Investment Grade CDS Index 69.64 +7.23%
  • America Energy Sector High-Yield CDS Index 584.0 -4.15%
  • European Financial Sector CDS Index 69.64 -12.44%
  • Italian/German 10Y Yld Spread 162.75 -14.25 basis points
  • Asia Ex-Japan Investment Grade CDS Index 66.88 -1.23%
  • Emerging Market CDS Index 233.69 +.72%
  • iBoxx Offshore RMB China Corporate High Yield Index 171.25 -.04%
  • 2-Year Swap Spread 7.5 +1.25 basis points
  • TED Spread 29.0 +9.5 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap 13.25 +38.0 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 64.0 +.17%
  • 3-Month T-Bill Yield .91% -26.0 basis points
  • Yield Curve .27 -4.0 basis points
  • China Iron Ore Spot 86.0 USD/Metric Tonne +.22%
  • Citi US Economic Surprise Index 55.70 -1.3 points
  • Citi Eurozone Economic Surprise Index 3.9 +.8 point
  • Citi Emerging Markets Economic Surprise Index -14.5 -.6 point
  • 10-Year TIPS Spread 1.45 +4.0 basis points
  • 57.9% chance of 75.0 basis point Fed rate cut at April 29th meeting, 53.8% chance of 75.0 basis point cut at June 10th meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating -217 open in Japan 
  • China A50 Futures: Indicating -29 open in China
  • DAX Futures: Indicating -167 open in Germany
Portfolio:
  • Slightly Lower: On losses in my tech/industrial/biotech/medical/retail sector longs
  • Disclosed Trades: Added to my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 25% Net Long

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