Wednesday, May 17, 2017

Stocks Falling Substantially into Final Hour on Diminishing Tax/Healthcare Reform Hopes, Less Economic Optimism, Yen Strength, Financial/Technology Sector Weakness

Broad Equity Market Tone:
  • Advance/Decline Line: Substantially Lower
  • Sector Performance: Almost Every Sector Declining
  • Volume: Above Average
  • Market Leading Stocks: Underperforming
Equity Investor Angst:
  • Volatility(VIX) 14.5 +35.5%
  • Euro/Yen Carry Return Index 129.27 -1.19%
  • Emerging Markets Currency Volatility(VXY) 7.69 +2.81%
  • S&P 500 Implied Correlation 46.01 +16.9%
  • ISE Sentiment Index 108.0 +1.0%
  • Total Put/Call 1.04 +33.3%
  • NYSE Arms 1.25 +10.72%
Credit Investor Angst:
  • North American Investment Grade CDS Index 64.73 +5.0%
  • America Energy Sector High-Yield CDS Index 361.0 -.39%
  • European Financial Sector CDS Index 70.2 +5.26%
  • Western Europe Sovereign Debt CDS Index 7.85 +.58%
  • Asia Pacific Sovereign Debt CDS Index 20732 +3.55%
  • Emerging Market CDS Index 195.39 +2.99%
  • iBoxx Offshore RMB China Corporate High Yield Index 138.11 +.02%
  • 2-Year Swap Spread 22.5 -.75 basis point
  • TED Spread 28.0 unch.
  • 3-Month EUR/USD Cross-Currency Basis Swap -31.50 -2.0 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 72.96 -.31%
  • 3-Month T-Bill Yield .89% -1.0 basis point
  • Yield Curve 98.0 -5.0 basis points
  • China Import Iron Ore Spot $62.20/Metric Tonne +1.68%
  • Citi US Economic Surprise Index -37.50 -.1 point
  • Citi Eurozone Economic Surprise Index 63.80 -1.6 points
  • Citi Emerging Markets Economic Surprise Index 28.4 -2.1 points
  • 10-Year TIPS Spread 1.80 -4.0 basis points
  • 80.4% chance of Fed rate hike at July 26 meeting, 85.0% chance at Sept. 20 meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating -315 open in Japan 
  • China A50 Futures: Indicating -16 open in China
  • DAX Futures: Indicating -58 open in Germany
Portfolio: 
  • Lower: On losses in my biotech/tech/retail/medical sector longs 
  • Disclosed Trades: Added to my (IWM)/(QQQ) hedges and to my (EEM) short
  • Market Exposure: Moved to 50% Net Long

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