Wednesday, July 05, 2017

Stocks Slightly Higher into Final Hour on Economic Optimism, Bargain-Hunting, Technical Buying, Biotech/Tech Sector Strength

Broad Equity Market Tone:
  • Advance/Decline Line: Modestly Lower
  • Sector Performance: Mixed
  • Volume: Slightly Below Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 11.0 -1.96%
  • Euro/Yen Carry Return Index 134.14 +.04%
  • Emerging Markets Currency Volatility(VXY) 7.93 +1.54%
  • S&P 500 Implied Correlation 35.04 -2.88%
  • ISE Sentiment Index 106.0 +19.1%
  • Total Put/Call .92 -2.13%
  • NYSE Arms 1.04 +6.0%
Credit Investor Angst:
  • North American Investment Grade CDS Index 61.13 +.94%
  • America Energy Sector High-Yield CDS Index 457.0 -.26%
  • European Financial Sector CDS Index 53.08 +1.01%
  • Western Europe Sovereign Debt CDS Index 5.76 -5.57%
  • Asia Pacific Sovereign Debt CDS Index 22.22 +1.62%
  • Emerging Market CDS Index 205.55 +1.92%
  • iBoxx Offshore RMB China Corporate High Yield Index 139.74 +.02%
  • 2-Year Swap Spread 24.0 +1.75 basis points
  • TED Spread 26.0 -1.75 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap -27.25 -1.25 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 72.32 -.44%
  • 3-Month T-Bill Yield 1.04% +2.0 basis points
  • Yield Curve 92.0 -1.0 basis points
  • China Import Iron Ore Spot $63.23/Metric Tonne n/a
  • Citi US Economic Surprise Index -63.10 +.2 point
  • Citi Eurozone Economic Surprise Index 38.40 +9.0 points
  • Citi Emerging Markets Economic Surprise Index 15.20 +4.2 points
  • 10-Year TIPS Spread 1.77 +1.0 basis point
  • 34.9% chance of Fed rate hike at Sept. 20 meeting, 36.2% chance at Nov. 1 meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +29 open in Japan 
  • China A50 Futures: Indicating -82 open in China
  • DAX Futures: Indicating +7 open in Germany
Portfolio: 
  • Higher: On gains in my biotech/tech/medical sector longs 
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 75% Net Long

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