Monday, October 24, 2016

Stocks Higher into Final Hour on Buyout Speculation, Yen Weakness, Diminishing Global Growth Fears, Tech/Telecom Sector Strength

Broad Equity Market Tone:
  • Advance/Decline Line: Modestly Higher
  • Sector Performance: Most Sectors Rising
  • Volume: Slightly Below Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 13.0 -2.55%
  • Euro/Yen Carry Return Index 118.45 +.38%
  • Emerging Markets Currency Volatility(VXY) 9.45 +.43%
  • S&P 500 Implied Correlation 40.5 -1.4%
  • ISE Sentiment Index 90.0 -20.35%
  • Total Put/Call .86 -11.34%
  • NYSE Arms 1.20 -11.03
Credit Investor Angst:
  • North American Investment Grade CDS Index 73.80 +.07%
  • America Energy Sector High-Yield CDS Index 516.0 -1.86%
  • European Financial Sector CDS Index 91.50 -2.14%
  • Western Europe Sovereign Debt CDS Index 18.60 +2.62%
  • Asia Pacific Sovereign Debt CDS Index 33.66 -1.01%
  • Emerging Market CDS Index 231.36 -.36%
  • iBoxx Offshore RMB China Corporate High Yield Index 132.57 +.08%
  • 2-Year Swap Spread 24.5 +.75 basis point
  • TED Spread 55.25 -.5 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -44.25 -1.0 basis point
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 72.40 +.24%
  • 3-Month T-Bill Yield .32% unch.
  • Yield Curve 93.0 +2.0 basis points
  • China Import Iron Ore Spot $59.28/Metric Tonne +.95%
  • Citi US Economic Surprise Index -14.7 +8.3 points
  • Citi Eurozone Economic Surprise Index 34.3 +17.7 points
  • Citi Emerging Markets Economic Surprise Index -18.60 -.2 point
  • 10-Year TIPS Spread 1.69% unch.
  • 70.9% chance of Fed rate hike at Dec. 14 meeting, 72.7% chance at Feb. 1 meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +116 open in Japan 
  • China A50 Futures: Indicating +24 open in China
  • DAX Futures: Indicating +1 open in Germany
Portfolio: 
  • Higher: On gains in my tech/retail sector longs 
  • Disclosed Trades: None
  • Market Exposure: 50% Net Long

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