Monday, October 02, 2017

Stocks Higher into Final Hour on Tax Reform Hopes, Economic Optimism, Short-Covering, Biotech/Defense Sector Strength

Broad Equity Market Tone:
  • Advance/Decline Line: Substantially Higher
  • Sector Performance: Almost Every Sector Rising
  • Volume: Around Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 9.51 unch.
  • Euro/Yen Carry Return Index 137.95 -.49%
  • Emerging Markets Currency Volatility(VXY) 7.85 -.76%
  • S&P 500 Implied Correlation 20.09 -9.38%
  • ISE Sentiment Index 200.0 +132.5%
  • Total Put/Call .90 -12.6%
  • NYSE Arms 1.03 -14.87%
Credit Investor Angst:
  • North American Investment Grade CDS Index 55.02 -1.46%
  • America Energy Sector High-Yield CDS Index 406.0 +.55%
  • European Financial Sector CDS Index 59.28 -.39%
  • Western Europe Sovereign Debt CDS Index 5.33 +6.81%
  • Asia Pacific Sovereign Debt CDS Index 18.88 -.68%
  • Emerging Market CDS Index 182.05 -1.59%
  • iBoxx Offshore RMB China Corporate High Yield Index 142.12 +.04%
  • 2-Year Swap Spread 25.25 -.5 basis point
  • TED Spread 29.0 unch.
  • 3-Month EUR/USD Cross-Currency Basis Swap -40.75 -.75 basis point
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 73.51 -.24%
  • 3-Month T-Bill Yield 1.01% -3.0 basis points
  • Yield Curve 85.0 unch.
  • China Import Iron Ore Spot $62.05/Metric Tonne unch.
  • Citi US Economic Surprise Index 1.50 +9.4 points
  • Citi Eurozone Economic Surprise Index 45.60 -4.6 points
  • Citi Emerging Markets Economic Surprise Index 18.90 +3.9 basis points
  • 10-Year TIPS Spread 1.84 -2.0 basis points
  • 70.5% chance of Fed rate hike at Dec. 13 meeting, 71.7% chance at Jan. 31 meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +95 open in Japan 
  • China A50 Futures: Indicating +153 open in China
  • DAX Futures: Indicating -5 open in Germany
Portfolio: 
  • Higher: On gains in my tech/biotech/medical sector longs
  • Disclosed Trades: None
  • Market Exposure: 100% Net Long

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