Monday, August 14, 2017

Stocks Higher into Final Hour on Diminished Geopolitical Concerns, Bargain-Hunting, Technical Buying, Tech/Transport Sector Strength

Broad Equity Market Tone:
  • Advance/Decline Line: Substantially Higher
  • Sector Performance: Almost Every Sector Rising
  • Volume: Below Average
  • Market Leading Stocks: Outperforming
Equity Investor Angst:
  • Volatility(VIX) 12.41 -20.0%
  • Euro/Yen Carry Return Index 134.73 +.06%
  • Emerging Markets Currency Volatility(VXY) 7.83 -2.37%
  • S&P 500 Implied Correlation 34.39 -17.0%
  • ISE Sentiment Index n/a
  • Total Put/Call .82 -14.58%
  • NYSE Arms 1.14 -14.04%
Credit Investor Angst:
  • North American Investment Grade CDS Index 59.99 -2.77%
  • America Energy Sector High-Yield CDS Index 446.0 -.56%
  • European Financial Sector CDS Index 53.79 -2.72%
  • Western Europe Sovereign Debt CDS Index 5.42 -3.39%
  • Asia Pacific Sovereign Debt CDS Index 22.89 +5.17%
  • Emerging Market CDS Index 189.64 -.92%
  • iBoxx Offshore RMB China Corporate High Yield Index 141.0 +.10%
  • 2-Year Swap Spread 25.50 -.5 basis point
  • TED Spread 29.5 +1.75 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap -29.75 -2.0 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 73.67 +.06%
  • 3-Month T-Bill Yield 1.02% -1.0 basis point
  • Yield Curve 90.0 unch.
  • China Import Iron Ore Spot $74.71/Metric Tonne -.64%
  • Citi US Economic Surprise Index -35.40 +1.2 points
  • Citi Eurozone Economic Surprise Index 12.20 -.4 point
  • Citi Emerging Markets Economic Surprise Index 14.40 -4.9 basis points
  • 10-Year TIPS Spread 1.78 -2.0 basis points
  • 15.6% chance of Fed rate hike at Nov. 1 meeting, 44.2% chance at Dec. 13 meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +42 open in Japan 
  • China A50 Futures: Indicating -3 open in China
  • DAX Futures: Indicating +5 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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