North American Investment Grade CDS Index 104.88 bps +1.18%
European Financial Sector CDS Index 99.0 bps +.05%
Western Europe Sovereign Debt CDS Index 115.0 bps +2.56%
Emerging Market CDS Index 209.85 bps -2.12%
2-Year Swap Spread 17.0 unch.
TED Spread 31.0 -1 bp
Economic Gauges:
3-Month T-Bill Yield .14% -1 bp
Yield Curve 235.0 -5 bps
China Import Iron Ore Spot $136.30/Metric Tonne +.15%
Citi US Economic Surprise Index -37.40 +3.4 points
10-Year TIPS Spread 1.77% -2 bps
Overseas Futures:
Nikkei Futures: Indicating -7 open in Japan
DAX Futures: Indicating +12 open in Germany
Portfolio:
Higher: On gains in my Biotech, Medical, Technology and Retail long positions
Disclosed Trades: None
Market Exposure: 100% Net Long
BOTTOM LINE: Today's overall market action is very bullish as the S&P 500 reverses higher from morning losses again despite a mildly disappointing GDP report and a weaker euro. On the positive side, Homebuilding, HMO, Hospital, Biotech, Medial and Gold stocks are especially strong, rising 1.5%+. The S&P GSCI Ag Spot Index is rising another +3.07% today and is now up +25.5% from its June 7th low. Copper also continues to trade well, rising another +.78%. Lumber is jumping +3.7% today. The Baltic Dry Index has gained another +6.35% this week. The Spain sovereign cds is falling -1.33% today to 176.17 bps, despite negative comments from Moody's. The Libor-OIS spread is falling to the lowest level since May 20th. On the negative side, Oil Tanker, Alt Energy, Steel and Software shares are under mild pressure, falling more than -.5%. The 10-year yield continues to fall too much, dropping another -8 bps to 2.89%. I suspect stocks will build on today's reversal early next week. I expect US stocks to trade modestly higher into the close from current levels on short-covering, less economic fear, technical buying, healthcare stock strength and bargain-hunting.
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