Monday, July 08, 2019

Stocks Lower into Afternoon on Diminished Fed Rate-Cut Expectations, China Trade Deal Concerns, Profit-Taking, Biotech/Financial Sector Weakness

 Broad Equity Market Tone:
  • Advance/Decline Line: Substantially Lower
  • Sector Performance: Most Sectors Declining
  • Volume: Light
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 14.2 +7.2%
  • Euro/Yen Carry Return Index 126.61 +.09%
  • Emerging Markets Currency Volatility(VXY) 7.68 +.8%
  • S&P 500 Implied Correlation 34.9 +6.1%
  • ISE Sentiment Index 57.0 -53.3%
  • Total Put/Call .99 +11.2%
  • NYSE Arms 1.08 +48.0%
Credit Investor Angst:
  • North American Investment Grade CDS Index 54.49 +3.16%
  • America Energy Sector High-Yield CDS Index 611.0 +.5%
  • European Financial Sector CDS Index 62.42 +2.14%
  • Italian/German 10Y Yld Spread 215.25 +4.5 basis points
  • Asia Ex-Japan Investment Grade CDS Index 64.28 +2.61%
  • Emerging Market CDS Index 166.98 +1.51%
  • iBoxx Offshore RMB China Corporate High Yield Index 164.65 +.06%
  • 2-Year Swap Spread 3.25 unch.
  • TED Spread 11.75 -1.25 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap -18.75 +.25 basis point
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 67.38 +.04%
  • 3-Month T-Bill Yield 2.23% +1.0 basis point
  • Yield Curve 15.5 -1.75 basis points
  • China Iron Ore Spot 115.50 USD/Metric Tonne +2.79%
  • Citi US Economic Surprise Index -55.80 +2.7 points
  • Citi Eurozone Economic Surprise Index -13.0 -3.1 points
  • Citi Emerging Markets Economic Surprise Index -34.70 +.9 point
  • 10-Year TIPS Spread 1.70 +1.0 basis point
  • 100.0% chance of Fed rate cut at Sept. 18th meeting, 100.0% chance of cut at October 30th meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +51 open in Japan 
  • China A50 Futures: Indicating -39 open in China
  • DAX Futures: Indicating -31 open in Germany
Portfolio:
  • Slightly Lower: On losses in my tech/biotech/medical/industrial sector longs
  • Disclosed Trades: Added to my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 75% Net Long

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