Monday, September 25, 2017

Stocks Lower into Final Hour on Geopolitical Tensions, Diminished Healthcare Reform Hopes, Profit-Taking, Tech/Gaming Sector Weakness

Broad Equity Market Tone:
  • Advance/Decline Line: Modestly Lower
  • Sector Performance: Mixed
  • Volume: Around Average
  • Market Leading Stocks: Underperforming
Equity Investor Angst:
  • Volatility(VIX) 10.84 +13.0%
  • Euro/Yen Carry Return Index 137.87 -1.19%
  • Emerging Markets Currency Volatility(VXY) 7.90 +.25%
  • S&P 500 Implied Correlation 24.55 +9.11%
  • ISE Sentiment Index 91.0 +40.0%
  • Total Put/Call .68 -29.17%
  • NYSE Arms .95 -11.24%
Credit Investor Angst:
  • North American Investment Grade CDS Index 60.0 +.35%
  • America Energy Sector High-Yield CDS Index 434.0 +.31%
  • European Financial Sector CDS Index 60.14 +.58%
  • Western Europe Sovereign Debt CDS Index 5.12 +1.09%
  • Asia Pacific Sovereign Debt CDS Index 16.46 +2.65%
  • Emerging Market CDS Index 191.32 +1.41%
  • iBoxx Offshore RMB China Corporate High Yield Index 141.95 +.08%
  • 2-Year Swap Spread 25.75 -1.0 basis point
  • TED Spread 31.0 +.5 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -32.75 -2.25 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 74.19 -.52%
  • 3-Month T-Bill Yield 1.02% unch.
  • Yield Curve 79.0 -3.0 basis points
  • China Import Iron Ore Spot $63.06/Metric Tonne -.79%
  • Citi US Economic Surprise Index -8.70 +.1 point
  • Citi Eurozone Economic Surprise Index 40.80 -8.6 points
  • Citi Emerging Markets Economic Surprise Index 15.20 -1.3 basis points
  • 10-Year TIPS Spread 1.85 unch.
  • 65.4% chance of Fed rate hike at Dec. 13 meeting, 66.1% chance at Jan. 31 meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating -182 open in Japan 
  • China A50 Futures: Indicating -58 open in China
  • DAX Futures: Indicating -37 open in Germany
Portfolio: 
  • Slightly Lower: On losses in my medical/tech sector longs
  • Disclosed Trades: Added to my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 75% Net Long

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