Thursday, January 14, 2016

Stocks Substantially Higher into Afternoon on Oil Bounce, Yen Weakness, Bargain-Hunting, Biotech/Energy Sector Strength

Broad Equity Market Tone:
  • Advance/Decline Line: Higher
  • Sector Performance: Most Sectors Rising
  • Volume: Heavy
  • Market Leading Stocks: Underperforming
Equity Investor Angst:
  • Volatility(VIX) 24.13 -4.32%
  • Euro/Yen Carry Return Index 134.08 +.26%
  • Emerging Markets Currency Volatility(VXY) 11.75 +1.21%
  • S&P 500 Implied Correlation 61.55 -3.98%
  • ISE Sentiment Index 72.0 -4.0%
  • Total Put/Call 1.09 -8.4%
  • NYSE Arms .58 -51.03% 
Credit Investor Angst:
  • North American Investment Grade CDS Index 104.71 +2.76%
  • America Energy Sector High-Yield CDS Index 1,764.0 +2.1%
  • European Financial Sector CDS Index 83.77 +3.61%
  • Western Europe Sovereign Debt CDS Index 17.82 +1.63%
  • Asia Pacific Sovereign Debt CDS Index 78.22 +1.96%
  • Emerging Market CDS Index 384.14 +1.04%
  • iBoxx Offshore RMB China Corporate High Yield Index 122.83 +.01%
  • 2-Year Swap Spread 7.35 -.25 basis point
  • TED Spread 40.5 -1.25 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap -24.0 -1.75 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 67.69 +.01%
  • 3-Month T-Bill Yield .24% +2.0 basis points
  • Yield Curve 120.0 +4.0 basis points
  • China Import Iron Ore Spot $40.22/Metric Tonne +1.80%
  • Citi US Economic Surprise Index -26.3 -1.6 points
  • Citi Eurozone Economic Surprise Index 20.50 -2.2 points
  • Citi Emerging Markets Economic Surprise Index -4.80 -.3 point
  • 10-Year TIPS Spread 1.47% +2.0 basis points
  • 33.1% chance of Fed rate hike at March 16 meeting, 40.5% chance at April 27 meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +240 open in Japan 
  • China A50 Futures: Indicating -214 open in China
  • DAX Futures: Indicating +59 open in Germany
Portfolio: 
  • Higher: On gains in my tech/biotech/medical sector longs
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges and some of my (EEM) short
  • Market Exposure: Moved to 75% Net Long

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