Tuesday, August 01, 2017

Stocks Higher into Final Hour on Earnings Optimism, Less European/Emerging Markets/US High-Yield Debt Angst, Short-Covering, Tech/Homebuilding Sector Strength

Broad Equity Market Tone:
  • Advance/Decline Line: Slightly Higher
  • Sector Performance: Most Sectors Rising
  • Volume: Around Average
  • Market Leading Stocks: Outperforming
Equity Investor Angst:
  • Volatility(VIX) 10.03 -2.24%
  • Euro/Yen Carry Return Index 135.83 -.31%
  • Emerging Markets Currency Volatility(VXY) 7.49 +.13%
  • S&P 500 Implied Correlation 28.55 -4.3%
  • ISE Sentiment Index n/a
  • Total Put/Call .85 -6.59%
  • NYSE Arms 1.18 +29.4%
Credit Investor Angst:
  • North American Investment Grade CDS Index 56.44 -1.5%
  • America Energy Sector High-Yield CDS Index 435.0 +.4%
  • European Financial Sector CDS Index 50.07 -.52%
  • Western Europe Sovereign Debt CDS Index 5.1 +4.18%
  • Asia Pacific Sovereign Debt CDS Index 18.82 -1.16%
  • Emerging Market CDS Index 190.22 -.02%
  • iBoxx Offshore RMB China Corporate High Yield Index 140.57 +.01%
  • 2-Year Swap Spread 24.0 -.75 basis point
  • TED Spread 24.25 +.5 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -27.0 +.5 basis point
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 73.89 -.15%
  • 3-Month T-Bill Yield 1.07% unch.
  • Yield Curve 91.0-3.0 basis points
  • China Import Iron Ore Spot $73.56/Metric Tonne -.19%
  • Citi US Economic Surprise Index -44.80 -1.7 points
  • Citi Eurozone Economic Surprise Index 16.10 -3.0 basis points
  • Citi Emerging Markets Economic Surprise Index 20.30 +4.0 basis points
  • 10-Year TIPS Spread 1.79 -3.0 basis points
  • 21.1% chance of Fed rate hike at Nov. 1 meeting, 46.1% chance at Dec. 13 meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +35 open in Japan 
  • China A50 Futures: Indicating +28 open in China
  • DAX Futures: Indicating +3 open in Germany
Portfolio: 
  • Slightly Higher: On gains in my tech/retail sector longs 
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 100% Net Long

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