Tuesday, July 07, 2020

Stocks Reversing Lower into Final Hour on Coronavirus Worries, Global Recession Fears, Oil Decline, Energy/Financial Sector Weaknesss

 Broad Equity Market Tone:
  • Advance/Decline Line: Substantially Lower
  • Sector Performance: Most Sectors Declining
  • Volume: Light
  • Market Leading Stocks: Underperforming
Equity Investor Angst:
  • Volatility(VIX) 27.90 -.14%
  • Euro/Yen Carry Return Index 126.03 +.07%
  • Emerging Markets Currency Volatility(VXY) 9.90 unch.
  • S&P 500 Implied Correlation 61.17 -.60%
  • ISE Sentiment Index 120.0 +8.0 points
  • Total Put/Call .78 +6.85%
  • NYSE Arms .76 +18.8%
Credit Investor Angst:
  • North American Investment Grade CDS Index 72.33 +1.08%
  • US Energy High-Yield OAS 962.96 +.13%
  • European Financial Sector CDS Index 72.28 +.86%
  • Italian/German 10Y Yld Spread 163.25 -1.25 basis points
  • Asia Ex-Japan Investment Grade CDS Index 79.72 -.21%
  • Emerging Market CDS Index 184.52 +4.47%
  • iBoxx Offshore RMB China Corporate High Yield Index 172.23 +1.39%
  • 2-Year Swap Spread 5.5 -.75 basis point
  • TED Spread 13.75 -.25 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -10.5 -1.75 basis points
  • MBS  5/10 Treasury Spread  100.0 -4.0 basis points
  • IHS Markit CMBX BBB- 6 69.0 unch.
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 60.52 -.14%
  • 3-Month T-Bill Yield .14% unch.
  • Yield Curve 51.75 -2.0 basis points
  • China Iron Ore Spot 101.20 USD/Metric Tonne +1.82%
  • Citi US Economic Surprise Index 221.30 +7.7 points
  • Citi Eurozone Economic Surprise Index -50.10 -3.4 points
  • Citi Emerging Markets Economic Surprise Index -24.40 -1.8 points
  • 10-Year TIPS Spread 1.42 -3.0 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 -74 open in Japan 
  • China A50 Futures: Indicating -15 open in China
  • DAX Futures: Indicating -43 open in Germany
Portfolio:
  • Higher: On gains in my tech/biotech 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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