Wednesday, June 12, 2019

Stocks Lower into Final Hour on China Trade Deal Concerns, Oil Drop, Technical Selling, Energy/Tech Energy Sector Weakness

 Broad Equity Market Tone:
  • Advance/Decline Line: Modestly Lower
  • Sector Performance: Mixed
  • Volume: Below Average
  • Market Leading Stocks: Underperforming
Equity Investor Angst:
  • Volatility(VIX) 16.0 +.06%
  • Euro/Yen Carry Return Index 127.22 -.37%
  • Emerging Markets Currency Volatility(VXY) 8.31 -1.42%
  • S&P 500 Implied Correlation 39.81 +1.43%
  • ISE Sentiment Index 79.0 +9.72%
  • Total Put/Call .97 +1.04%
  • NYSE Arms 1.34 +139.2%
Credit Investor Angst:
  • North American Investment Grade CDS Index 61.05 +1.61%
  • America Energy Sector High-Yield CDS Index 614.0 -.08%
  • European Financial Sector CDS Index 79.04 +2.13%
  • Italian/German 10Y Yld Spread 267.0 +4.5 basis points
  • Asia Ex-Japan Investment Grade CDS Index 72.47 +1.56%
  • Emerging Market CDS Index 192.29 +1.38%
  • iBoxx Offshore RMB China Corporate High Yield Index 163.62 -.01%
  • 2-Year Swap Spread 5.0 unch.
  • TED Spread 19.25 -.5 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -12.0 +.5 basis point
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 66.65 -.26%
  • 3-Month T-Bill Yield 2.22% -4.0 basis points
  • Yield Curve 24.0 +2.0 basis points
  • China Iron Ore Spot 103.29 USD/Metric Tonne +.98%
  • Citi US Economic Surprise Index -52.20 n/a
  • Citi Eurozone Economic Surprise Index -25.5 n/a
  • Citi Emerging Markets Economic Surprise Index -28.40 n/a
  • 10-Year TIPS Spread 1.71 -2.0 basis point
  • 82.3% chance of Fed rate cut at July 31st meeting, 94.4% chance of cut at Sept. 18th meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating -101 open in Japan 
  • China A50 Futures: Indicating -113 open in China
  • DAX Futures: Indicating +3 open in Germany
Portfolio:
  • Higher: On gains in my industrial/biotech/medical sector longs and index hedges
  • Disclosed Trades: None
  • Market Exposure: 50% Net Long

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