Thursday, February 09, 2017

Stocks Surging into Afternoon on Tax Reform Hopes, Economic Optimism, Oil Gain, Transport/Financial Sector Strength

Broad Equity Market Tone:
  • Advance/Decline Line: Substantially Higher
  • Sector Performance: Almost Every Sector Rising
  • Volume: Slightly Above Average
  • Market Leading Stocks: Outperforming
Equity Investor Angst:
  • Volatility(VIX) 10.90 -4.8%
  • Euro/Yen Carry Return Index 125.93 +.7%
  • Emerging Markets Currency Volatility(VXY) 10.11 -2.6%
  • S&P 500 Implied Correlation 45.70 -3.01%
  • ISE Sentiment Index 71.0 -1.0%
  • Total Put/Call .91 -5.21%
  • NYSE Arms .85 -16.16%
Credit Investor Angst:
  • North American Investment Grade CDS Index 64.96 -2.28%
  • America Energy Sector High-Yield CDS Index 381.0 -.48%
  • European Financial Sector CDS Index 92.0 -2.72%
  • Western Europe Sovereign Debt CDS Index 23.90 -1.54%
  • Asia Pacific Sovereign Debt CDS Index 29.42 -.91%
  • Emerging Market CDS Index 230.20 unch.
  • iBoxx Offshore RMB China Corporate High Yield Index 134.29 +.09%
  • 2-Year Swap Spread 31.0 +.5 basis point
  • TED Spread 50.5 unch.
  • 3-Month EUR/USD Cross-Currency Basis Swap -25.75 +1.0 basis point
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 71.20 +.13%
  • 3-Month T-Bill Yield .54% +1.0 basis point
  • Yield Curve 122.0 +2.0 basis points
  • China Import Iron Ore Spot $83.84/Metric Tonne +.37%
  • Citi US Economic Surprise Index 42.40 +1.5 points
  • Citi Eurozone Economic Surprise Index 48.10 -2.9 points
  • Citi Emerging Markets Economic Surprise Index 36.70 -.1 point
  • 10-Year TIPS Spread 2.0 +3.0 basis points
  • 40.8% chance of Fed rate hike at May 3 meeting, 65.1% chance at June 14 meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +180 open in Japan 
  • China A50 Futures: Indicating +38 open in China
  • DAX Futures: Indicating +7 open in Germany
Portfolio: 
  • Higher: On gains in my in my retail/tech/biotech/medical sector longs 
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges and some of my (EEM) short
  • Market Exposure: Moved to 100% Net Long

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