Wednesday, October 04, 2017

Stocks Reversing Slightly Higher into Final Hour on Economic Optimism, Technical Buying, Short-Covering, Biotech/Homebuilding Sector Strength

Broad Equity Market Tone:
  • Advance/Decline Line: Around Even
  • Sector Performance: Mixed
  • Volume: Below Average
  • Market Leading Stocks: Performing In Line
Equity Investor Angst:
  • Volatility(VIX) 9.62 +1.16%
  • Euro/Yen Carry Return Index 138.29 +.07%
  • Emerging Markets Currency Volatility(VXY) 7.83 +.13%
  • S&P 500 Implied Correlation 19.32 -2.13%
  • ISE Sentiment Index 92.0 +8.24%
  • Total Put/Call .81 +11.0%
  • NYSE Arms 1.15 +68.8%
Credit Investor Angst:
  • North American Investment Grade CDS Index 54.32 +.12%
  • America Energy Sector High-Yield CDS Index 402.0 -.50%
  • European Financial Sector CDS Index 60.43 +2.68%
  • Western Europe Sovereign Debt CDS Index 5.43 +2.07%
  • Asia Pacific Sovereign Debt CDS Index 18.22 +6.89%
  • Emerging Market CDS Index 177.69 -.41%
  • iBoxx Offshore RMB China Corporate High Yield Index 142.22 +.04%
  • 2-Year Swap Spread 27.35 +.75 basis point
  • TED Spread 27.75 -2.0 basis points
  • 3-Month EUR/USD Cross-Currency Basis Swap -36.25 +.25 basis point
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 73.77 +.35%
  • 3-Month T-Bill Yield 1.06% +1.0 basis point
  • Yield Curve 86.0 unch.
  • China Import Iron Ore Spot $62.05/Metric Tonne unch.
  • Citi US Economic Surprise Index 9.70 +8.0 points
  • Citi Eurozone Economic Surprise Index 41.70 -3.6 points
  • Citi Emerging Markets Economic Surprise Index 16.50 -.6 basis point
  • 10-Year TIPS Spread 1.86 +1.0 basis point
  • 73.4% chance of Fed rate hike at Dec. 13 meeting, 74.4% chance at Jan. 31 meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +81 open in Japan 
  • China A50 Futures: Indicating +429 open in China
  • DAX Futures: Indicating -27 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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