Friday, December 07, 2018

Stocks Reversing Sharply Lower into Final Hour on Global Growth Fears, Trade War Worries, Earnings Jitters, Tech/Retail Sector Weakness

 Broad Equity Market Tone:
  • Advance/Decline Line: Substantially Lower
  • Sector Performance: Almost Every Sector Declining
  • Volume: Above Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 23.5 +11.0%
  • Euro/Yen Carry Return Index 133.62 +.26%
  • Emerging Markets Currency Volatility(VXY) 10.13 unch.
  • S&P 500 Implied Correlation 49.3 +12.6%
  • ISE Sentiment Index 88.0 unch.
  • Total Put/Call 1.07 -4.46%
  • NYSE Arms 1.57 +48.11%
Credit Investor Angst:
  • North American Investment Grade CDS Index 81.22 +2.61%
  • America Energy Sector High-Yield CDS Index 691.0 +1.23%
  • European Financial Sector CDS Index 107.84 -2.9%
  • Italian/German 10Y Yld Spread 288.25 -8.5 basis points
  • Asia Pacific Sovereign Debt CDS Index 9.85 +.31%
  • Emerging Market CDS Index 205.62 -1.49%
  • iBoxx Offshore RMB China Corporate High Yield Index 148.13 -.56%
  • 2-Year Swap Spread 16.0 -1.25 basis points
  • TED Spread 37.25 +3.75 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap -15.25 +.25 basis point
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 67.22 +.27%
  • 3-Month T-Bill Yield 2.39% -1.0 basis point
  • Yield Curve 14.0 +2.0 basis points
  • China Iron Ore Spot 65.26 USD/Metric Tonne +.46%
  • Citi US Economic Surprise Index -6.5 -3.8 points
  • Citi Eurozone Economic Surprise Index -49.20 -.5 point
  • Citi Emerging Markets Economic Surprise Index -4.6 -1.1 points
  • 10-Year TIPS Spread 1.90 -1.0 basis point
  • 70.4% chance of Fed rate hike at Jan. 30th meeting, 79.3% chance at March 20th meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating -373 open in Japan 
  • China A50 Futures: Indicating -96 open in China
  • DAX Futures: Indicating -80 open in Germany
Portfolio: 
  • Lower: On losses in my tech/biotech/medical/retail/industrial sector longs
  • Disclosed Trades: Added to my (IWM)/(QQQ) hedges and to my emerging market shorts
  • Market Exposure: Moved to 25% Net Long

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