Thursday, April 07, 2016

Stocks Falling into Afternoon on Rising European/Emerging Markets/US High-Yield Debt Angst, Yen Strength, Oil Decline, Retail/Financial 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) 15.8 +11.9%
  • Euro/Yen Carry Return Index 128.57 -1.71%
  • Emerging Markets Currency Volatility(VXY) 11.73 +.17%
  • S&P 500 Implied Correlation 56.63 +4.0%
  • ISE Sentiment Index 106.0 +29.3%
  • Total Put/Call .94 -1.63%
  • NYSE Arms .94 -1.55
Credit Investor Angst:
  • North American Investment Grade CDS Index 81.34 +4.70%
  • America Energy Sector High-Yield CDS Index 1,457.0 +5.4%
  • European Financial Sector CDS Index 102.61 +5.21%
  • Western Europe Sovereign Debt CDS Index 27.66 +4.85%
  • Asia Pacific Sovereign Debt CDS Index 60.39 +2.21%
  • Emerging Market CDS Index 310.31 +4.08%
  • iBoxx Offshore RMB China Corporate High Yield Index 127.05 +.03%
  • 2-Year Swap Spread 12.75 +1.25 basis points
  • TED Spread 39.75 -.75 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -21.75 -.5 basis point
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 71.64 -.49%
  • 3-Month T-Bill Yield .23% unch
  • Yield Curve 100.0 -2.0 basis points
  • China Import Iron Ore Spot $54.57/Metric Tonne unch.
  • Citi US Economic Surprise Index -6.60 +1.0 point
  • Citi Eurozone Economic Surprise Index -31.0 -.6 point
  • Citi Emerging Markets Economic Surprise Index 5.50 +1.2 points
  • 10-Year TIPS Spread 1.59% unch.
  • 17.3% chance of Fed rate hike at June 15 meeting, 26.8% chance at July 27 meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating -254 open in Japan 
  • China A50 Futures: Indicating -74 open in China
  • DAX Futures: Indicating +31 open in Germany
Portfolio: 
  • Slightly Lower: On losses in my biotech/medical/tech/retail sector longs
  • Disclosed Trades: Added to my (IWM)/(QQQ) hedges and to my (EEM) short
  • Market Exposure: Moved to 25% Net Long

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