Earlier Tues, traders searched for...>

US TSYS/STOCKS: Earlier Tues, traders searched for reasons for risk-off mood; we

thought it was more international factors (Mideast and N.Korea). But Academy

Secs head of macro strategy Peter Tchir and colleague Jon Cardilli said today's

risk-off mood includes below factors, suggesting it's a broader mood: 

- 1) KRE(Regional Banks) -2.28%. A tax-reform proxy 

- 2) Bloomberg's Metals Index -2.04% 

- 3) EUR/JPY with no bid 

- 4) Russell 2k -1.07% 

- 5)3Q SLOOS report tied: 2nd weakest C&I loan demand this cycle. 

- Cardilli noted that on on Oct. 31, Tchir shifted to favor risk off, saying

Tsys yields wld "head lower and stocks could face some pressure over the coming

days." Tchir cited at that time some items on prior week that "raised red flags

and showed signs we could see risk off environment in the near future" such as

"Mueller's investigations and indictments," while "tax reform should enter the

'disappointment' phase" plus risk was that "positioning and sentiment are

showing signs that they have gotten ahead of themselves."