Stocks Slightly Higher into Final Hour on Diminished Global Growth Fears, Short-Covering, Biotech/Consumer Discretionary Sector Strength
Broad Equity Market Tone:
- Advance/Decline Line: Modestly Higher
- Sector Performance: Mixed
- Market Leading Stocks: Performing In Line
Equity Investor Angst:
- Volatility(VIX) 14.34 +2.36%
- Euro/Yen Carry Return Index 138.96 +.08%
- Emerging Markets Currency Volatility(VXY) 10.04 +1.1%
- S&P 500 Implied Correlation 46.72 -1.37%
- ISE Sentiment Index 80.0 -4.76%
- Total Put/Call .71 -26.04%
Credit Investor Angst:
- North American Investment Grade CDS Index 79.86 +.34%
- European Financial Sector CDS Index 140.72 +3.26%
- Western Europe Sovereign Debt CDS Index 85.0 +.37%
- Emerging Market CDS Index 282.97 +2.80%
- 2-Year Swap Spread 13.25 +.25 basis points
- TED Spread 25.25 +2.0 basis points
- 3-Month EUR/USD Cross-Currency Basis Swap -6.25 -1.5 basis points
Economic Gauges:
- 3-Month T-Bill Yield .00% -1 basis point
- Yield Curve 230.0 +2 basis points
- China Import Iron Ore Spot $133.80/Metric Tonne unch.
- Citi US Economic Surprise Index 47.8 +.8 point
- Citi Emerging Markets Economic Surprise Index 3.90 -1.6 points
- 10-Year TIPS Spread 2.20 +1 basis point
Overseas Futures:
- Nikkei Futures: Indicating +59 open in Japan
- DAX Futures: Indicating -1 open in Germany
Portfolio:
- Slightly Higher: On gains in my retail/biotech sector longs
- Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges, then added them back
- Market Exposure: 25% Net Long
1 comment:
Inverse Volatility, XVZ, rose, as Volatility, XVZ, traded lower, as Solar Stocks, TAN, Internet Retail, FDN, Nasdaq Internet, PNQI, Biotechnology, IBB, Media, PBS, Casinos and Resorts, BJK, Smallcap Industrials, PSCI, US Infrastructure, PKB, and Shipping Stocks, SEA, traded higher. Energy Production, XOP, and Small Cap Energy, PSCE, rose to new rally highs. The Russell 2000, traded to a new rally high on higher Small Cap Pure Growth, RZG, and Small Cap Pure Value, RZV, both rising to new rally highs. Networking, IGN, traded lower.
In yield bearing sectors, Leveraged Buyouts, PSP, traded higher, and International Telecom, IST, rose to a new rally high, while Utilities, XLU, traded lower.
Japan, EWJ, JSC, rose taking the Nikkei, NKY, to a new rally high. Other nations trading higher included Egypt, EGPT, Indonesia, IDX, IDXJ, South Korea, EWY, New Zealand, ENZL, Australia, EWA, KROO. Peru, EPU, and Turkey, TUR, traded lower.
Intel, INTC, Broadcom, BRCM, Atmel, ATML, traded lower, turning Semiconductor, XSD, lower.
China, YAO, traded unchanged as Value Walk reports Chinese Bank Problems Echo Those Of Japan (Not US), Michael Pettis Says.
The EUR/JPY closed up at 133.42, supporting Eurozone Stocks, EZU, despite a lower European Financials, EUFN, led so by Ireland’s IRE, and Germany’s DB, while Banco Santander, SAN, rose taking Spaine, EWP, to a new rally high.
Silver Miners, SIL, and Gold Miners, GDX, lower on a lower price of Silver, SLV, and Gold, GLD.
Aggregate Credit, AGG, traded lower as The Interest Rate on the US Ten Year Note, ^TNX, rose to 2.64%; and the Steepner, STPP, rose after having fallen for two weeks, reflecting a re-steepening of the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX. The No Taper Rally supported a rally in the longer duration debt such as The Zeroes, ZROZ, 30 Year US Government Debt, EDV, High Yield Munis, HYD, Longer Duration Corporated Debt, BLV, Emerging Market Bonds, EMB, but inasmuch as money failed with the No Taper Rally, the rally in these debts ended has ended, as is seen in their combined ongoing Yahoo Finance Chart.
The ratio of equity to debt such as Eurozone Stocks relative to Eurozone Debt, EZU:EU, as well as Nation Investment relative to World Treasury Debt, EFA:BWX, and World Stocks relative to Aggregate Credit, VT:AGG, communicates that stocks are leveraged at record levels.
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