Thursday, August 31, 2017

Stocks Rising into Final Hour on Tax Reform Hopes, Buyout Speculation, Oil Gain, Biotech/Homebuilding 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) 10.45 -6.86%
  • Euro/Yen Carry Return Index 136.50 -.08%
  • Emerging Markets Currency Volatility(VXY) 7.54 -.4%
  • S&P 500 Implied Correlation 32.58 -6.51%
  • ISE Sentiment Index 114.0 +10.7%
  • Total Put/Call 1.02 +37.8%
  • NYSE Arms .86 -32.06%
Credit Investor Angst:
  • North American Investment Grade CDS Index 58.47 -2.47%
  • America Energy Sector High-Yield CDS Index 470.0 -.20%
  • European Financial Sector CDS Index 53.34 -2.84%
  • Western Europe Sovereign Debt CDS Index 5.85 +1.56%
  • Asia Pacific Sovereign Debt CDS Index 18.18 -.79%
  • Emerging Market CDS Index 180.58 -1.50%
  • iBoxx Offshore RMB China Corporate High Yield Index 141.10 +.01%
  • 2-Year Swap Spread 20.75 -.25 basis point
  • TED Spread 31.75 +2.25 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap -25.25 +1.5 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 74.46 +.10%
  • 3-Month T-Bill Yield .99% -2.0 basis points
  • Yield Curve 79.0-2.0 basis points
  • China Import Iron Ore Spot $78.91/Metric Tonne +3.72%
  • Citi US Economic Surprise Index -23.10 -1.9 points
  • Citi Eurozone Economic Surprise Index 28.0 -1.8 points
  • Citi Emerging Markets Economic Surprise Index 16.30 -2.3 basis points
  • 10-Year TIPS Spread 1.77 +1.0 basis point
  • 15.6% chance of Fed rate hike at Nov. 1 meeting, 39.1% chance at Dec. 13 meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +50 open in Japan 
  • China A50 Futures: Indicating +34 open in China
  • DAX Futures: Indicating +12 open in Germany
Portfolio: 
  • Higher: On gains in my tech/biotech/medical/retail sector longs 
  • Disclosed Trades: None
  • Market Exposure: 100% Net Long

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