Stocks Reversing Lower into Afternoon on Coronavirus 2nd Wave Worries, Global Recession Fears, Technical Selling, Biotech/Transport Sector Weakness

 Broad Equity Market Tone:

• Advance/Decline Line: Substantially Lower
  

• Sector Performance: Almost Every Sector Declining
  

• Volume: Below Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 26.2 +5.7%

• Euro/Yen Carry Return Index 129.42 +.63%

• Emerging Markets Currency Volatility(VXY) 10.3 +1.6%

• S&P 500 Implied Correlation 64.9 +9.5%

• ISE Sentiment Index 69 .0 -77.0 points

• Total Put/Call .80 +5.3%

• NYSE Arms 1.21 -28.4%

Credit Investor Angst:

• North American Investment Grade CDS Index 70.77 +1.34%
  

• US Energy High-Yield OAS 851.59 -1.3%

• European Financial Sector CDS Index 73.25 +.18%

• Italian/German 10Y Yld Spread 150.75 +.75 basis points
  

• Asia Ex-Japan Investment Grade CDS Index  73.07 -1.35%
  

• Emerging Market CDS Index 191.25 -.16%
  

• iBoxx Offshore RMB China Corporate High Yield Index 176.91 +.04%

• 2-Year Swap Spread 7.25 +.5 basis point

• TED Spread 17.5 -.25 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -4.25 -.75 basis point
• MBS  5/10 Treasury Spread  87.25 -3.5 basis points
• IHS Markit CMBX BBB- 6 67.25 +.25 basis point

Economic Gauges:

• Bloomberg Emerging Markets Currency Index 61.13 -.38%
• 3-Month T-Bill Yield .09% unch.

• Yield Curve 41.0 -3.25 basis points

• China Iron Ore Spot 105.90 USD/Metric Tonne -.04%

• Citi US Economic Surprise Index 246.8 -.3 point

• Citi Eurozone Economic Surprise Index 166.30 +37.5 points

• Citi Emerging Markets Economic Surprise Index -13.1 +5.0 points

• 10-Year TIPS Spread 1.55 +3.0 basis points
• 100.0% chance of no change at Nov. 5th meeting, 100.0% chance of no change at Dec. 16th meeting

Overseas Futures:

• Nikkei 225 Futures: Indicating +98 open in Japan 
• China A50 Futures: Indicating -211 open in China

• DAX Futures: Indicating -91 open in Germany

Portfolio:

• Slightly Higher: On gains in my tech sector longs, index hedges and emerging market shorts
  

• Disclosed Trades: Added to my (IWM)/(QQQ) hedges
  

• Market Exposure: Moved to 25% Net Long