Wednesday, August 07, 2019

Stocks Lower into Afternoon on China Trade Deal Worries, Global Growth Concerns, Oil Decline, Energy/Financial Sector Weakness

 Broad Equity Market Tone:
  • Advance/Decline Line: Modestly Lower
  • Sector Performance: Mixed
  • Volume: Heavy
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 20.3 +.5%
  • Euro/Yen Carry Return Index 123.48 -.31%
  • Emerging Markets Currency Volatility(VXY) 8.59 -.69%
  • S&P 500 Implied Correlation 45.57 -1.47%
  • ISE Sentiment Index 73.0 -5.2%
  • Total Put/Call 1.15 +3.6%
  • NYSE Arms 1.15 +11.7%
Credit Investor Angst:
  • North American Investment Grade CDS Index 61.09 +1.76%
  • America Energy Sector High-Yield CDS Index 562.0 +2.48%
  • European Financial Sector CDS Index 69.76 +.48%
  • Italian/German 10Y Yld Spread 200.0 -4.75 basis points
  • Asia Ex-Japan Investment Grade CDS Index 69.86 +2.2%
  • Emerging Market CDS Index 183.30 +.34%
  • iBoxx Offshore RMB China Corporate High Yield Index 164.93 -.03%
  • 2-Year Swap Spread -1.0 -1.25 basis points
  • TED Spread 19.25 unch.
  • 3-Month EUR/USD Cross-Currency Basis Swap -8.5 +5.25 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 66.08 -.13%
  • 3-Month T-Bill Yield 2.0% -2.0 basis points
  • Yield Curve 10.5 -3.75 basis points
  • China Iron Ore Spot 89.25 USD/Metric Tonne +.18%
  • Citi US Economic Surprise Index -33.5 +1.7 points
  • Citi Eurozone Economic Surprise Index -53.3 -2.6 points
  • Citi Emerging Markets Economic Surprise Index -21.2 -.9 point
  • 10-Year TIPS Spread 1.60 +2.0 basis points
  • 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 +39 open in Japan 
  • China A50 Futures: Indicating -34 open in China
  • DAX Futures: Indicating +55 open in Germany
Portfolio:
  • Slightly Higher: On gains in my tech/biotech sector longs and index hedges
  • 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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