Wednesday, January 04, 2017

Stocks Higher into Final Hour on Economic Optimism, Oil Gain, Short-Covering, Healthcare/Financial Sector Strength

Broad Equity Market Tone:
  • Advance/Decline Line: Substantially Higher
  • Sector Performance: Almost Every Sector Rising
  • Volume: Slightly Below Average
  • Market Leading Stocks: Outperforming
Equity Investor Angst:
  • Volatility(VIX) 11.95 -7.0%
  • Euro/Yen Carry Return Index 128.52 +.43%
  • Emerging Markets Currency Volatility(VXY) 11.02 -1.61%
  • S&P 500 Implied Correlation 46.90 -4.6%
  • ISE Sentiment Index 83.0 -25.23%
  • Total Put/Call .87 -11.22%
  • NYSE Arms 1.20 +41.98%
Credit Investor Angst:
  • North American Investment Grade CDS Index 63.50 -4.23%
  • America Energy Sector High-Yield CDS Index 430.0 -4.60%
  • European Financial Sector CDS Index 89.33 -4.40%
  • Western Europe Sovereign Debt CDS Index 20.08 -3.69%
  • Asia Pacific Sovereign Debt CDS Index 35.05 -1.81%
  • Emerging Market CDS Index 232.74 -2.89%
  • iBoxx Offshore RMB China Corporate High Yield Index 132.79 -.12%
  • 2-Year Swap Spread 24.25 -.75 basis point
  • TED Spread 47.0 -3.0 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap -46.25 +3.75 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 69.71 +.45%
  • 3-Month T-Bill Yield .53% +3.0 basis points
  • Yield Curve 122.0 -1.0 basis point
  • China Import Iron Ore Spot $77.25/Metric Tonne -.85%
  • Citi US Economic Surprise Index 25.50 +.8 point
  • Citi Eurozone Economic Surprise Index 60.60 +10.2 basis points
  • Citi Emerging Markets Economic Surprise Index 25.60 -.1 point
  • 10-Year TIPS Spread 2.00% unch.
  • 33.1% chance of Fed rate hike at March 15 meeting, 46.4% chance at May 3 meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +104 open in Japan 
  • China A50 Futures: Indicating +59 open in China
  • DAX Futures: Indicating +5 open in Germany
Portfolio: 
  • Higher: On gains in my tech/biotech/retail/medical sector longs
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 75% Net Long

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