Thursday, July 14, 2016

Stocks Higher into Close on Less European Debt Angst, Earnings Optimism, Yen Weakness, Financial/Transport Sector Strength

Broad Equity Market Tone:
  • Advance/Decline Line: Modestly Higher
  • Sector Performance: Mixed
  • Volume: Below Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 12.67 -2.84%
  • Euro/Yen Carry Return Index 122.96 +1.18%
  • Emerging Markets Currency Volatility(VXY) 9.84 -.91%
  • S&P 500 Implied Correlation 47.04 +.79%
  • ISE Sentiment Index 93.0 +56.73%
  • Total Put/Call .88 +11.39%
  • NYSE Arms .52 -48.06
Credit Investor Angst:
  • North American Investment Grade CDS Index 70.72 -.84%
  • America Energy Sector High-Yield CDS Index 722.0 +1.65%
  • European Financial Sector CDS Index 95.75 -2.54%
  • Western Europe Sovereign Debt CDS Index 25.60 -16.17%
  • Asia Pacific Sovereign Debt CDS Index 47.79 -1.73%
  • Emerging Market CDS Index 248.08 -.33%
  • iBoxx Offshore RMB China Corporate High Yield Index 130.64 +.07%
  • 2-Year Swap Spread 17.75 +2.0 basis points
  • TED Spread 37.25 +.25 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -43.75 -1.5 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 73.06 +.54%
  • 3-Month T-Bill Yield .31% +1.0 basis point
  • Yield Curve 86.0 +6.0 basis points
  • China Import Iron Ore Spot $58.47/Metric Tonne -1.15%
  • Citi US Economic Surprise Index 1540 +2.4 points
  • Citi Eurozone Economic Surprise Index 4.5 +.1 point
  • Citi Emerging Markets Economic Surprise Index -16.80 -.1 point
  • 10-Year TIPS Spread 1.49% +2.0 basis points
  • 19.2% chance of Fed rate hike at Sept. 21 meeting, 19.2% chance at Nov. 2 meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +225 open in Japan 
  • China A50 Futures: Indicating +14 open in China
  • DAX Futures: Indicating -9 open in Germany
Portfolio: 
  • Higher: On gains in my biotech/medical/tech sector longs
  • Disclosed Trades: None
  • Market Exposure: 50% Net Long

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