Wednesday, November 09, 2016

Stocks Surging into Final Hour on Election Uncertainty End, Yen Weakness, Short-Covering, Biotech/Financial Sector Strength

Broad Equity Market Tone:
  • Advance/Decline Line: Substantially Higher
  • Sector Performance: Mixed
  • Volume: Heavy
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 15.05 -19.69%
  • Euro/Yen Carry Return Index 120.78 -.26%
  • Emerging Markets Currency Volatility(VXY) 10.28 +9.25%
  • S&P 500 Implied Correlation 45.01 -25.12%
  • ISE Sentiment Index 71.0 -15.48%
  • Total Put/Call 1.07 -28.19%
  • NYSE Arms .48 -50.32
Credit Investor Angst:
  • North American Investment Grade CDS Index 74.38 -1.88%
  • America Energy Sector High-Yield CDS Index 659.0 +.41%
  • European Financial Sector CDS Index 96.73 +.8%
  • Western Europe Sovereign Debt CDS Index 19.75 +2.92%
  • Asia Pacific Sovereign Debt CDS Index 37.07 +4.79%
  • Emerging Market CDS Index 243.62 +4.40%
  • iBoxx Offshore RMB China Corporate High Yield Index 132.72 -.01%
  • 2-Year Swap Spread 25.5 +1.75 basis points
  • TED Spread 48.0 +.25 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -44.5 +2.0 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 71.67 -1.24%
  • 3-Month T-Bill Yield .43% +1.0 basis point
  • Yield Curve 117.0 +17.0 basis points
  • China Import Iron Ore Spot $70.98/Metric Tonne +3.92%
  • Citi US Economic Surprise Index -9.0 +.8 point
  • Citi Eurozone Economic Surprise Index 33.4 +.1 point
  • Citi Emerging Markets Economic Surprise Index -4.90 +1.7 points
  • 10-Year TIPS Spread 1.86% +12.0 basis points
  • 83.1% chance of Fed rate hike at Feb. 1 meeting, 85.4% chance at March 15 meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +1,014 open in Japan 
  • China A50 Futures: Indicating +71 open in China
  • DAX Futures: Indicating +7 open in Germany
Portfolio: 
  • Higher: On gains in my medical/biotech/tech/retail sector longs and emerging markets shorts
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 75% Net Long

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