Wednesday, August 30, 2017

Stocks Rising into Final Hour on Economic Optimism, Tax Reform Hopes, Technical Buying, Tech/Biotech Sector Strength

Broad Equity Market Tone:
  • Advance/Decline Line: Higher
  • Sector Performance: Most Sectors Rising
  • Volume: Light
  • Market Leading Stocks: Outperforming
Equity Investor Angst:
  • Volatility(VIX) 11.08 -5.3%
  • Euro/Yen Carry Return Index 136.85 -.15%
  • Emerging Markets Currency Volatility(VXY) 7.53 +.67%
  • S&P 500 Implied Correlation 33.55 +2.29%
  • ISE Sentiment Index 108.0 +96.4%
  • Total Put/Call .69 -10.39%
  • NYSE Arms 1.03 -5.6%
Credit Investor Angst:
  • North American Investment Grade CDS Index 59.30 -1.55%
  • America Energy Sector High-Yield CDS Index 474.0 -.47%
  • European Financial Sector CDS Index 54.90 -3.03%
  • Western Europe Sovereign Debt CDS Index 5.76 -4.0%
  • Asia Pacific Sovereign Debt CDS Index 18.33 -3.04%
  • Emerging Market CDS Index 182.71 -1.69%
  • iBoxx Offshore RMB China Corporate High Yield Index 141.08 -.02%
  • 2-Year Swap Spread 21.0 +.5 basis point
  • TED Spread 29.50 -.5 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -26.75 +1.25 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 74.38 -.17%
  • 3-Month T-Bill Yield 1.01% +1.0 basis point
  • Yield Curve 81.0 unch.
  • China Import Iron Ore Spot $76.08/Metric Tonne -.37%
  • Citi US Economic Surprise Index -21.20 +9.0 points
  • Citi Eurozone Economic Surprise Index 29.80 +4.0 points
  • Citi Emerging Markets Economic Surprise Index 18.60 -1.5 basis points
  • 10-Year TIPS Spread 1.76 +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 +84 open in Japan 
  • China A50 Futures: Indicating +6 open in China
  • DAX Futures: Indicating +24 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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