Market Intelligence Report Overview

The market is oversold and made a momentum low...........but possibly not the price low. 

Volatility... staying with us for a while.

Investors... full hedges on.

Traders... to each his own.

Hedges did their work today. Moving down the stops on the short hedges and enjoying the ride.

"An overnight devaluation of the Chinese Renminbi pushed the exchange rate to more than seven per dollar for the first time since 2008 and spurred another sharp selloff, as the S&P 500 sank 3% for its worst one-day showing of the year.  The broad index saw its year-to-date gains whittled to 13.5%, and sits 6% below its July 26 highs

Treasurys ripped in near lockstep with yields declining 11 or 12 basis points across the curve and the 10-year falling to 1.72%, 35 basis points above its record close in July 2016. WTI crude fell back below $55 a barrel, while gold rose to $1,463 an ounce, its best close since May 2013.  The VIX finished above 24 and has nearly doubled in the last five sessions." 

Socks had another rough day, fell for a fifth straight day, with the S&P 500 wrapping up the week down a meaty 3%.

The hedging model is downtrend, full hedges on. Risk off.

"Recap July 31"

Stocks took a tumble with the S&P 500 finishing red by more than 1%, but well off its worst levels of the day.  The Treasury curve saw notable flattening, with the two-year yield rising two basis points and the long bond dropping five, and gold lost more than 1% to settle at $1,416 an ounce.  The VIX jumped to more than 16 and is up 33% so far this week.

Earlier today, the July Chicago PMI collapsed to 44.4, its worst reading since Dec. 2015. 

"The ISM-Chicago Business Survey, a regional view of the national economy, is a time-tested, market-moving report. The CHICAGO Report is available to subscribers 3 minutes before its release to the public 8:45 a.m. CT on the last working day each month. The Chicago Business Barometer, summarizing current business activity, also is known as Chicago Purchasing Manager Index or Chicago PMI. The Barometer is considered to be a leading indicator of the USA economy."