Thursday, January 21, 2016

Stocks Rising into Final Hour on Central Bank Hopes, Oil Bounce, Short-Covering, Energy/Restaurant Sector Strength

Broad Equity Market Tone:
  • Advance/Decline Line: Modestly Higher
  • Sector Performance: Mixed
  • Volume: Above Average
  • Market Leading Stocks: Underperforming
Equity Investor Angst:
  • Volatility(VIX) 26.60 -3.55%
  • Euro/Yen Carry Return Index 133.50 +.27%
  • Emerging Markets Currency Volatility(VXY) 12.44 +1.14%
  • S&P 500 Implied Correlation 64.57 +3.87%
  • ISE Sentiment Index 124.0 +175.56%
  • Total Put/Call 1.04 -11.86%
  • NYSE Arms .83 -32.89% 
Credit Investor Angst:
  • North American Investment Grade CDS Index 110.02 -1.59%
  • America Energy Sector High-Yield CDS Index 1,861.0 +.40%
  • European Financial Sector CDS Index 91.0 -4.86%
  • Western Europe Sovereign Debt CDS Index 21.80 +14.04%
  • Asia Pacific Sovereign Debt CDS Index 77.05 -4.17%
  • Emerging Market CDS Index 389.61 -1.35%
  • iBoxx Offshore RMB China Corporate High Yield Index 121.98 -.22%
  • 2-Year Swap Spread 6.5 +.25 basis point
  • TED Spread 36.50 -.5 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -23.25 unch.
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 66.61 +.02%
  • 3-Month T-Bill Yield .28% +2.0 basis points
  • Yield Curve 119.0 +3.0 basis points
  • China Import Iron Ore Spot $41.29/Metric Tonne -.77%
  • Citi US Economic Surprise Index -45.7 -.6 point
  • Citi Eurozone Economic Surprise Index 12.10 -.7 point
  • Citi Emerging Markets Economic Surprise Index -7.90 +1.5 points
  • 10-Year TIPS Spread 1.33% unch.
  • 22.1% chance of Fed rate hike at March 16 meeting, 26.4% chance at April 27 meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +367 open in Japan 
  • China A50 Futures: Indicating +36 open in China
  • DAX Futures: Indicating -30 open in Germany
Portfolio: 
  • Slightly Higher: On gains in my tech/retail sector longs
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges, then added them back
  • Market Exposure: 50% Net Long

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