Thursday, July 23, 2020

Stocks Falling into Afternoon on Rising China Tensions, Earnings Worries, Global Recession Fears, Tech/Gaming Sector Weakness

 Broad Equity Market Tone:
  • Advance/Decline Line: Lower
  • Sector Performance: Most Sectors Declining
  • Volume: Below Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 26.1 +7.4%
  • Euro/Yen Carry Return Index 128.43 -.08%
  • Emerging Markets Currency Volatility(VXY) 9.7 +1.4%
  • S&P 500 Implied Correlation 58.2 +10.1%
  • ISE Sentiment Index 113 .0 -28.0 points
  • Total Put/Call .70 -6.7%
  • NYSE Arms 1.36 +32.0%
Credit Investor Angst:
  • North American Investment Grade CDS Index 69.80 +.72%
  • US Energy High-Yield OAS 863.52 +.11%
  • European Financial Sector CDS Index 66.27 -.53%
  • Italian/German 10Y Yld Spread 146.5 -6.25 basis points
  • Asia Ex-Japan Investment Grade CDS Index  74.27 -2.24%
  • Emerging Market CDS Index 181.38 +6.65%
  • iBoxx Offshore RMB China Corporate High Yield Index 175.81 +.09%
  • 2-Year Swap Spread 6.25 -.25 basis point
  • TED Spread 15.0 unch.
  • 3-Month EUR/USD Cross-Currency Basis Swap -7.5 -1.75 basis points
  • MBS  5/10 Treasury Spread  98.0 unch.
  • IHS Markit CMBX BBB- 6 66.0 unch.
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 61.29 -.2%
  • 3-Month T-Bill Yield .11% unch.
  • Yield Curve 46.25 unch.
  • China Iron Ore Spot 107.30 USD/Metric Tonne -.88%
  • Citi US Economic Surprise Index 236.1 -3.8 points
  • Citi Eurozone Economic Surprise Index 66.0 +3.2 points
  • Citi Emerging Markets Economic Surprise Index -16.7 -7.9 points
  • 10-Year TIPS Spread 1.45 -2.0 basis points
  • 100.0% chance of no change at Sept. 16 meeting, 100.0% chance of no change at Nov. 5th meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating -231 open in Japan 
  • China A50 Futures: Indicating -152 open in China
  • DAX Futures: Indicating -140 open in Germany
Portfolio:
  • Slightly Higher: On gains in my consumer staple sector longs, index hedges and emerging market shorts
  • Disclosed Trades: Added to my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 25% Net Long

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