Friday, August 18, 2017

Stocks Reversing Slightly Higher into Final Hour on Tax Reform Hopes, Earnings Outlooks, Oil Gain, Energy/Hospital Sector Strength

Broad Equity Market Tone:
  • Advance/Decline Line: Modestly Higher
  • Sector Performance: Mostly Higher
  • Volume: Above Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 14.51 -6.7%
  • Euro/Yen Carry Return Index 134.04 +.04%
  • Emerging Markets Currency Volatility(VXY) 7.41 -.54%
  • S&P 500 Implied Correlation 40.7 +12.4%
  • ISE Sentiment Index 66.0 -8.3%
  • Total Put/Call 1.02 -4.7%
  • NYSE Arms 1.06 -38.4%
Credit Investor Angst:
  • North American Investment Grade CDS Index 62.49 +3.55%
  • America Energy Sector High-Yield CDS Index 459.0 +.15%
  • European Financial Sector CDS Index 55.93 +2.9%
  • Western Europe Sovereign Debt CDS Index 5.58 +1.0%
  • Asia Pacific Sovereign Debt CDS Index 21.54 +.09%
  • Emerging Market CDS Index 190.38 -1.42%
  • iBoxx Offshore RMB China Corporate High Yield Index 141.16 +.10%
  • 2-Year Swap Spread 26.5 +.5 basis point
  • TED Spread 31.0 unch.
  • 3-Month EUR/USD Cross-Currency Basis Swap -27.0 -1.5 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 73.80 +.23%
  • 3-Month T-Bill Yield 1.0% unch.
  • Yield Curve 89.0 -1.0 basis point
  • China Import Iron Ore Spot $77.94/Metric Tonne +6.81%
  • Citi US Economic Surprise Index -29.40 -3.3 points
  • Citi Eurozone Economic Surprise Index 9.90 -.6 point
  • Citi Emerging Markets Economic Surprise Index 18.30 +1.4 basis points
  • 10-Year TIPS Spread 1.77 -1.0 basis point
  • 15.6% chance of Fed rate hike at Nov. 1 meeting, 42.5% chance at Dec. 13 meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +15 open in Japan 
  • China A50 Futures: Indicating +19 open in China
  • DAX Futures: Indicating +3 open in Germany
Portfolio: 
  • Slightly Higher: On gains in my tech sector longs 
  • Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges
  • Market Exposure: Moved to 75% Net Long

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