Tuesday, October 24, 2017

Stocks Rising into Final Hour on Tax Reform Hopes, Earnings Optimism, Oil Gain, Financial/Homebuilding Sector Strength

Broad Equity Market Tone:
  • Advance/Decline Line: Higher
  • Sector Performance: Most Sectors Rising
  • Volume: Above Average
  • Market Leading Stocks: Outperforming
Equity Investor Angst:
  • Volatility(VIX) 10.75 -2.89%
  • Euro/Yen Carry Return Index 139.54 +.42%
  • Emerging Markets Currency Volatility(VXY) 8.25 +.36%
  • S&P 500 Implied Correlation 16.63 -2.29%
  • ISE Sentiment Index 73.0 -38.66%
  • Total Put/Call .82 -15.5%
  • NYSE Arms .89 -43.0%
Credit Investor Angst:
  • North American Investment Grade CDS Index 52.61 -.50%
  • America Energy Sector High-Yield CDS Index 387.0 +.49%
  • European Financial Sector CDS Index 57.54 -1.2%
  • Western Europe Sovereign Debt CDS Index 4.69 -1.57%
  • Asia Pacific Sovereign Debt CDS Index 15.40 -1.34%
  • Emerging Market CDS Index 175.06 +.25%
  • iBoxx Offshore RMB China Corporate High Yield Index 144.66 +.15%
  • 2-Year Swap Spread 23.75 unch.
  • TED Spread 26.25 -.5 basis point
  • 3-Month EUR/USD Cross-Currency Basis Swap -40.75 -1.75 basis points
Economic Gauges:
  • Bloomberg Emerging Markets Currency Index 73.15 -.15%
  • 3-Month T-Bill Yield 1.11% +2.0 basis points
  • Yield Curve 83.0 +2.0 basis points
  • China Import Iron Ore Spot $62.42/Metric Tonne +.68%
  • Citi US Economic Surprise Index 7.0 +4.0 points
  • Citi Eurozone Economic Surprise Index 51.80 -1.1 basis points
  • Citi Emerging Markets Economic Surprise Index 17.0 +.1 basis point
  • 10-Year TIPS Spread 1.88 +1.0 basis points
  • 84.2% chance of Fed rate hike at Dec. 13 meeting, 85.1% chance at Jan. 31 meeting
Overseas Futures:
  • Nikkei 225 Futures: Indicating +105 open in Japan 
  • China A50 Futures: Indicating +21 open in China
  • DAX Futures: Indicating -3 open in Germany
Portfolio: 
  • Slightly Higher: On gains in my tech/retail sector longs
  • Disclosed Trades: None
  • Market Exposure: 75% Net Long

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