Thursday, December 06, 2018

Stocks Lower into Final Hour on Global Growth Fears, Trade War Worries, Oil Decline, Energy/Financial Sector Weakness

 Broad Equity Market Tone:
  • Advance/Decline Line: Substantially Lower
  • Sector Performance: Almost Every Sector Declining
  • Volume: Heavy
  • Market Leading Stocks: Outperforming
Equity Investor Angst:
  • Volatility(VIX) 23.5 +13.1%
  • Euro/Yen Carry Return Index 133.14 -.26%
  • Emerging Markets Currency Volatility(VXY) 10.19 +2.0%
  • S&P 500 Implied Correlation 47.17 +3.37%
  • ISE Sentiment Index 74.0 +8.82%
  • Total Put/Call 1.18 +26.9%
  • NYSE Arms 1.12 -66.47%
Credit Investor Angst:
  • North American Investment Grade CDS Index 80.92 +2.23%
  • America Energy Sector High-Yield CDS Index 681.0 +1.92%
  • European Financial Sector CDS Index 111.05 +512%
  • Italian/German 10Y Yld Spread 296.75 +7.5 basis points
  • Asia Pacific Sovereign Debt CDS Index 9.85 +.1%
  • Emerging Market CDS Index 210.36 +1.38%
  • iBoxx Offshore RMB China Corporate High Yield Index 148.96 +1.14%
  • 2-Year Swap Spread 17.25 +1.0 basis point
  • TED Spread 33.5 -2.0 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap -15.50 +7.5 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 67.04 -.31%
  • 3-Month T-Bill Yield 2.40% -1.0 basis point
  • Yield Curve 12.0 +1.0 basis point
  • China Iron Ore Spot 64.05 USD/Metric Tonne -.14%
  • Citi US Economic Surprise Index -2.8 +.3 point
  • Citi Eurozone Economic Surprise Index -48.70 +7.2 points
  • Citi Emerging Markets Economic Surprise Index -3.5 +2.0 points
  • 10-Year TIPS Spread 1.91 -3.0 basis points
  • 70.4% chance of Fed rate hike at Jan. 30th meeting, 83.5% chance at March 20th meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating -46 open in Japan 
  • China A50 Futures: Indicating +14 open in China
  • DAX Futures: Indicating +81 open in Germany
Portfolio: 
  • Higher: On gains in my tech sector longs, index hedges and emerging market shorts
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges and some of my emerging market shorts
  • Market Exposure: Moved to 75% Net Long

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